Introduction of Mutual funds are an important investment product

Mutual funds are an important investment product. Mutual funds are known as the safest way of investment for beginner investors. Somehow, how one invest in these funds and what size of funds one take changes its level of safety. A wise decision of investment in mutual funds can result in the high yield and return on investment. The present work is about developing a portfolio for mutual funds. The selected mutual funds are from the famous funds' families known as Fidelity Investments, American Funds, USAA, Nationwide, and Victory.

Mutual Funds Investment of Mutual funds are an important investment product

Selected Mutual Funds of Mutual funds are an important investment product

Five mutual funds families are selected for the purchase of mutual funds. Fidelity investment family offer several services including financial advice, retirement plans, trading, and brokerage services. The price of fidelity mutual funds is $11.02. American Funds are also symbolized as AWSHX to sell out mutual funds at $46.96 price. AWSHX are large blended mutual funds that can provide a high yield.  USAA mutual funds family is represented by the symbol of USAGX. The selling price of USAA funds is $15.55.  Excluding these two other mutual funds selling families are Nationwide and Victory with offered prices as $21.75 and $35.85.

Summarized Findings of Mutual funds are an important investment product

The section is consist of information about the selected mutual funds and key specification of these funds along with the impact of these investment products on the overall financial goal of an investment. In accordance with the comparative analysis Fidelity investment and Victory remains in the news most of the time elaborating on the future investment opportunities and risk-related news. All the selected mutual funds are growth funds with positive return (Finance.yahoo.com, 2019). The presented below table shows the holding return of selected mutual funds over a period of 6 months.   

Standardized returns of these mutual funds are positive. Fidelity investment funds and victory have a high expected return as the historical performance of these funds is relatively stronger than the performance of other mutual funds families. Sector breakdown analysis shows that fidelity funds are highly investing in the healthcare sector while funds of American funds family are almost equally divided into the sectors of consumer defensive and financial services. Somehow, nationwide funds are highly invested in the technology sector which has relatively percentages as 59.42%. The growth and performance of selected mutual funds are presented below in the graph and table. Gradually increasing lines in the graph indicate that return or yield on the mutual funds in increasing over the period of time, therefore, the investor will get a double benefit.

The above mentioned table shows that trailing total return of USAA is greater than all other mutual funds. Trailing total return for mutual funds are as 7.65 Fidelity funds, 10.16% American funds, 11.54% USAA, 10.06% nationwide, and -11.83% victory. Risk factor analysis of these mutual funds indicates that nationwide, victory, and fidelity investments as greater risk beta as compared to the American funds and USAA. The key reason behind this is a high standard deviation and fluctuating outcomes in the market. Furthermore, fees and expenses related analysis shows that these funds as reasonable fees and expenses that can be accepted in return of high expected return and yield on investment. 3 Year expected expense for mutual funds are like $214 Fidelity funds, $753 American funds, $39 USAA, $969 nationwide, and $406 victory. Fees are the expense of all funds are greater than USAA (Finance.yahoo.com, 2019). Minimum fees and expenses show that investor will get a high profit margin on this investment.

Financial Goals of Mutual funds are an important investment product

            The financial goal of this investment was to select investment products with minimum risk and high yield on investment. The select mutual funds fulfill this financial goal. Detail analysis of this portfolio has worked as a supportive factor in the accomplishment of these goals.    

Conclusion on Mutual funds are an important investment product

           The whole discussion concludes that all these selected mutual funds families are best for investment purpose as a risk factor of these investment products is not enough high while the expected return is positive and increasing with the passage of time. In addition, investment in the USAA funds will be a great opportunity to generate maximum yield and profit margin with limited cost and expenses.