Thesis: Mutual Fund Research Analysis

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Mutual Fund Research Analysis mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and other securities. The mutual fund will have a fund manager whose job is to trade the pooled money on a regular basis. At present, the worldwide value of all mutual funds totals more than $26 trillion (Mutual Fund, (n.d.). The following are some of the traditional and distinguishing characteristics of mutual funds:

Investors purchase mutual fund shares from the fund itself or through a broker for the fund. The price that one pays for mutual fund shares is the fund's approximate per share net asset value (NAV) plus any fees that the fund requires at time of purchase.

Mutual fund shares are redeemable. This means that if you would want to sell your fund shares you would sell them back to the fund.

Mutual funds generally sell their shares all the time. Although some funds will stop selling when they become too large.

Mutual funds are usually managed by investment advisers that are registered with the SEC.

Mutual funds usually come in many varieties. There are index funds, stock funds, bond funds, and money market funds. Each of these will have a different investment objective and strategy along with a different investment portfolio. Each mutual fund may also have different risks, volatility, along with different fees and expenses (Mutual Funds, 2007).

The fund that I chose to look at is that of USAA Precious Metals and Minerals (USAGX). This investment seeks long-term capital appreciation and protection against inflation. The fund normally invests at least 80% of its assets in the equity securities of domestic and foreign companies which are primarily engaged in gold exploration, mining, or processing of other precious metals and minerals. These include such as platinum, silver and diamonds. The remainders of its assets are invested in the equity securities of natural resource companies. These would be companies that engage in the exploration, production, or processing of base metals, oil, coal, or forest products. This fund is non-diversified

USAA Precious Metals and Minerals (USAGX), 2009).

This fund is a medium market cap fund which has 96.54% of assets in stocks, nothing in bonds and 3.30% in cash. The following a breakdown of the market capitalization for this fund:

Giant Cap 12.05%

Large Cap 34.53%

Medium Cap 36.96%

Small Cap 15.66%

Micro Cap 0.79%

This fund has present net assets of 893.16 Mil with a.05% dividend yield. The initial investment into this fund is $3,000

USAA Precious Metals and Minerals (USAGX), 2009).

When looking at USAGX and its returns over the past five years you can see that back in 2003 it had a return rate of 71.4% but took a nose dive the following year down to -10.7%. The next two years saw a decent recovery to about 40% each year. Then the bottom fell out again last year in which it was down 24.9%

USAA Precious Metals and Minerals (USAGX), 2009).

Calendar-Year Total Returns

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 YTD 2/2009 Total Return % 7.2 -15.0-31.0-67.6-71.4 -10.7-39.2-43.2-27.7 -24.9 -0.4% Rank in Cat 48-45 13-35 12-71 14-14 13-29-48 +/- Category 1.0-1.9-11.4-3.7-14.3 -2.5-8.4-11.6-4.5-4.9-0.6 +/- Index* 1.8 -21.6-25.9-65.7-70.1 -12.0-36.1-38.1-22.0 -28.8 When looking at what funds to invest in one should look to see how much a portfolio's return has changed over the past three years. This change is measured by its standard deviation. The lower the standard deviation, the more consistent the fund is." USAA Precious Metals and Mineral's mean total return over the past three years was 1.37%. Its standard-deviation over that same period was 42.35,… [END OF PREVIEW]

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Cite This Thesis:

APA Format

Mutual Fund Research Analysis.  (2009, March 14).  Retrieved July 17, 2019, from

MLA Format

"Mutual Fund Research Analysis."  14 March 2009.  Web.  17 July 2019. <>.

Chicago Format

"Mutual Fund Research Analysis."  March 14, 2009.  Accessed July 17, 2019.