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Mutual Fund Search

Your goal is to find a mutual fund that has the following characteristics:

5 year rate of return minimum of 5%

Low initial investment maximum of $2500
Low expenses and fees no load and under 1% expenses

There are numerous Fund families to choose from, but here are a couple that you can use.
Choose others is you wish.

Franklin Templeton

Choose a fund that meets the above criteria. Complete the following information about that fund.
Fund name Fidelity Value Discovery Fund
Symbol FVDFX
Type of Fund Seeks capital appreciation
Morningstar Rating and Category 4 out of 5 stars the rate of return is a higher than
average the expenses are a little under average
12 month Hi-Low $25.58-$21.78
Current NAV $23.74
YTD Return -1.13%
1 year Return -0.55%
5 year Avg annual return +13.71%
10 yr avg annual return +6.79%
Expenses and Fees Exp Ratio (Gross) = 0.84%
Holdings (top 5) JP Morgan Chase & Co, Johnson & Johnson, Wells Fargo & Co, General
Electric Co, and Berkshire Hathaway Inc CL B
Minimum Initial Investment $2,500.00

1. Why might you choose a mutual fund over a stock or bond?

A mutual fund does not have as much of a risk as a stock or bond.

2. Using the 10 year average return rate what would be your return on your fund if you had
invested $5,000 for the last 10 years? Remember mutual funds are compounded annually at
$33,950 would be my return on my fund.