Free sample research paper: MUTUAL FUND REPORT


When it comes to analysis of mutual funds there are various aspects that are usually analyzed. Some of these aspects include: the expense ratio, the minimum amount of investment that can be allowed, the sales load and finally size of fund. The expense ratio has recently become an important aspect of any mutual fund. When it comes to the three mutual funds that is QUGX, SINEX and FEFEX, the expense ratio play a vital role in determining which one of them is more preferable compared to others when it comes to investment ventures.  Normally, the expense ratio I supposed to range from 0.5 percent to 1 percent of the total assets of the mutual funds. Based on this information then its arguably in order to state that only FEFEX at 0.08 percent and SINEX at 0.45 percent are only profitable since their expense ratios are manageable compared to that of QUGX which has a rate of 2.32 percent which is higher than the expected maximum of 1 percent per mutual fund.  This part of argument that is based on expense ratio is only valid when the expense ratio is the only factor to use in the analysis since the size of the fund as well as sales load  are also key in determining the profitability of the mutual funds.

Sales load is another key factor that is usually considered when it comes to profitability of mutual funds. The sales load is usually influenced by the size of the fund. In the case of the three mutual funds, only QUGX has a definite sales load percentage that has been identified when it comes to the costs that are usually incurred. The fact that the sales load of QUGX is established while that of other is not  established means that acquiring the two that do not have sales loads one is not supposed to pay anything , that is they are acquired at no charge. So the investor that is the one buying the mutual fund does not pay anything since they are offered directly to the investing by the fund company. So based on sales load as the only factor of consideration the mutual fund QUGX is the most profitable one since it is within the stipulated 8 percent that is highest that can be paid as sales load.

Minimum investment is also another important point of analysis. This is mainly because it shows how much is needed as initial capital for one to be able to invest in a mutual fund. For this particular aspect the minimum available capital is $ 2500. This is to mean anything in the range of $ 2500 or below is very okay financially. This means that investing in QUGX is much better since it requires less initial investment. Based on this analysis in case minimum investment is the only factor of consideration, and then it is in order to state that the lower the minimum initial investment for the group that ones to invest in mutual fund the better. Therefore it is actually right to say that mutual fund QUGX is the most lucrative compared to the other two since it has lower minimum initial capital requirement of just $ 2000 compared to FEFEX and SENEX that require initial capital investment.

It is necessary to consider the size of the fund.  The bigger the size of the mutual the better since it gives a form of security. This is mainly because the one with a huge financial ability that makes it very easy to engage in many activities that will eventually lead to increased financial returns. In this case is FEFEX is best option since it has $1.8 billion fund while has SENEX has 204 million compared to the $ 121.5 million fund.  Based on all the analysis above it is arguably in order to state that FEFEX is the best mutual fund since it has the lowest expense ratio of about 0.08 and it has the highest size of the fund at about 1.8 billion dollars with no sales load.