- Go to https://www.morningstar.com
a. What information does provide the Morningstar Style Box®?
b. Morningstar assigns a Rating to each Mutual Fund. What are the criteria they use to assign this rating?
c. Use the information provided above (style box and ratings) to choose 3 different funds (10 different assets per fund) to prepare 3 portfolios for 3 different types of investors:
i. Aggressive
ii. Moderate
iii. Conservative
d. In half a page for each portfolio, explain:
i. The rationale behind choosing the given funds per each portfolio
ii. The criteria chosen to build each portfolio
iii. The total amount to invest in each portfolio is 1.000.000€.
e. Follow up the prices for all 3 portfolios for a week. Calculate the return for each portfolio at the end of the week. Explain your results and show them graphically. Compare in the same graph the development of the three portfolios you have chosen and the development in the same period of the S&P500 index. Explain your conclusions.
f. Explain how much is your return in this period, and compare it to an investment in the S&P 500 index.