Mutual Funds

Mutual Funds (MF) are one of the most widely held investments globally. There are many different asset categories that in which MFs can invest in. Each fund will explain their investment strategy in a prospectus. The portfolio management process is reviewed and different active strategies in beating a benchmark are analyzed. The concepts of asset allocation and choosing securities are reviewed. Various risk measures, such as the Sharpe ratio, as well as information ratios, will be evaluated. In addition, MFs have to follow strict regulatory guidelines. Specific fact sheets and results from different funds will be explored.

Course Objectives

By the end of the course, participants will be able to:

• Compare and contrast MF and other investment vehicles such as ETFs
• Explain prospectuses, expense ratios and other key aspects of a mutual fund
• Differentiate between active and passive management
• Identify strategies and applications utilized by active managers
• Analyze and discuss risk measurements
• Discuss the importance of outside services such as Morningstar Ratings

Suggested Prerequisites:

• Fundamentals of the Capital Markets / Securities Industry or equivalent knowledge

Program Level:Foundational

Advance Preparation: None

Computers and Financial Calculators: N/A

Recommended CPE Credits: 7