information for Sampsons Case 17 Excel
Over the last month, the Sampsons have been struggling with how to invest their savings to support their children’s college education. They previously considered stocks and bonds and are now seriously considering investing their money in mutual funds. They are looking to you for advice on which type of funds would be appropriate and whether they should invest their savings in one mutual fund or in several.
1)Why might mutual funds be more appropriate investments for the Sampsons than individual stocks or bonds?
2)Should the Sampsons invest their savings in mutual funds? Why or why not?
3)What types of mutual funds should the Sampsons consider, given their investment objective?
information for Sampsons Case 18 Excel
The Sampsons have been evaluating methods for investing money that will ultimately be used to support their children’s college education. They have concluded that a mutual fund is better suited to their needs than investing in individual stocks or individual bonds. They are now seriously considering a biotechnology fund, which is composed of numerous biotechnology stocks. They have heard that biotechnology stocks can experience very high returns in some periods. They are not concerned about some biotechnology stocks performing poorly in any period because the biotechnology mutual fund that they are considering contains multiple biotechnology stocks and is therefore diversified.