1. For 40 Extra Credit Points. Many mutual funds are part of a family of funds u
ID: 2709224 • Letter: 1
Question
1. For 40 Extra Credit Points.
Many mutual funds are part of a family of funds under the umbrella of a fund sponsor. Select three of these fund sponsors and answer the following questions.
a. Does the sponsor offer a growth fund or large-cap fund and an income fund?
b. What are the funds' load fees and 12b-1 fees?
c. What were the income and capital gains distributions made by the funds during the last year?
d. What were each fund's annual expenses (expense ratio) and annual return?
e. Do any of the funds offer retirement accounts?
Web Resources
Fidelity Investments: http://www.fidelity.com
Dreyfus Funds: http://www.dreyfus.com
American Century: http://www.americancentury.com
Columbia Funds: http://libertyfunds.com
T.Rowe Price: http://troweprice.com
Vanguard: http://www.vanguard.com
Scudder Funds: http://www.scudder.com
Explanation / Answer
Answer: I selected three funds. American Century, Fidelity Investments and Vanguard.
a. Yes the sponsor offer growth funds and income funds in all three funds offered by the sponsors.
b. In all three funds load fees and 12b-1 fees is included in their expense ratios. Basically it is between 0.25 to 1 per cent of the fund value.
c. Fidelity has paid dividend per share of $0.05 to $0.2 on their large cap growth funds and capital gain as high as $4 per share.
American Century has paid a dividend of up to $0.4 on their different mutual fund schemes and capital gain as high as $6 per share.
d. Fidelity investments expense ratio is between 0.5% tp 2%.
American Century expense ratio is between 0.5% to 3%.
Vanguards expense ratio is between 0.5% to 2%.
e. Yes all three of them offer retirement accounts.
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