Posted: December 6th, 2016

Provide 30 funds that your firm will potentially use in client portfolios. Justify your selections based on fund management (active vs passive), diversification, expense ratios, loads (if applicable) and how well the funds track their index (if applicable).

You are starting a new financial planning firm and need to determine what funds you are going to use to construct client portfolios.  Once your core funds are selected you will construct portfolios tailored to individual client goals.

1. Provide 30 funds that your firm will potentially use in client portfolios. Justify your selections based on fund management (active vs passive), diversification, expense ratios, loads (if applicable) and how well the funds track their index (if applicable).

2. Select one fund for each index and justify why each of the funds were selected based on the criteria listed above.

Scenario 1

Client information:

Name: Quan Boles

Age: 60

Goal: Bequest for his children

Risk tolerance: Maximum portfolio standard deviation of 9%

3. Create a portfolio for Mr. Boles based on the constraints and goals listed above. Use the information provided in the Excel spread sheet.
4. Calculate the expected return of the portfolio for Mr. Boles.
5. Calculate the standard deviation of the portfolio for Mr. Boles.
6. Calculate the Sharpe Ratio of the portfolio for Mr. Boles.
7. Create an IPS for Mr. Boles.