6. The process of selecting a mutual fund Jim, a 55-year-old lawyer, recently received $200,000 from the sale of his home. Although he has some other retirement money saved, his home was his primary investment and thus this money is essential to his plan to retire at age 65. The following statements represent the different things Jim must consider before choosing a mutual fund (not in the correct order). Complete each statement by choosing the appropriate words or phrases, and then indicate which step in the process of choosing a mutual fund it reflects.   The Process of Selecting a Mutual Fund   Jim is not interested in any specific fund types, nor is he willing to take on the risk associated with ______ funds. Step     Jim’s goal is to invest the money such that it will provide a steady stream of income from the age 65 onward. He hopes for a return of 5–6%. Step     Because he is nearing retirement, Jim should choose an investment __________ policy. Step      After establishing his portfolio, Jim will __________  to monitor the performance of his funds. Step      Jim is planning to invest a relatively large amount of money upon which he will be heavily dependent; therefore, he decides to seek out professional advice to be sure he is investing wisely. Step      Jim uses Vanguard’s fund screener to compare past performance, ratings, and services of different funds that meet his basic objective criteria. Step      Because he knows that funds with loads ________, he _______ funds with loads. Step

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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6. The process of selecting a mutual fund

Jim, a 55-year-old lawyer, recently received $200,000 from the sale of his home. Although he has some other retirement money saved, his home was his primary investment and thus this money is essential to his plan to retire at age 65. The following statements represent the different things Jim must consider before choosing a mutual fund (not in the correct order). Complete each statement by choosing the appropriate words or phrases, and then indicate which step in the process of choosing a mutual fund it reflects.
 
The Process of Selecting a Mutual Fund
 
Jim is not interested in any specific fund types, nor is he willing to take on the risk associated with ______ funds. Step    
Jim’s goal is to invest the money such that it will provide a steady stream of income from the age 65 onward. He hopes for a return of 5–6%. Step    
Because he is nearing retirement, Jim should choose an investment __________ policy. Step     
After establishing his portfolio, Jim will __________  to monitor the performance of his funds. Step     
Jim is planning to invest a relatively large amount of money upon which he will be heavily dependent; therefore, he decides to seek out professional advice to be sure he is investing wisely. Step     
Jim uses Vanguard’s fund screener to compare past performance, ratings, and services of different funds that meet his basic objective criteria. Step     
Because he knows that funds with loads ________, he _______ funds with loads. Step     
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