Chapter_13

The Mutual Fund Education Alliance

Since 1971, the Mutual Fund Education Alliance (MFEA) has been dedicated to informing and educating the investing public about how they can use mutual funds to achieve important lifetime goals.

The website for the MFEA provides both beginning and experienced investors with a wealth of information that can be used to become a more informed mutual fund investor.  For example, the MFEA website provides information about

  • The power of investing
  • Understanding risk
  • Why mutual funds?
  • The importance of performance,
  • Fund costs, fees, and expenses
  • Taxation

For more information go to

http://www.mfea.com

Teaching Suggestions

You may want to use the information in this blog post and information on this website to

  • Supplement the material you present in your classroom lecture or online course.
  • Create an assignment designed to strengthen a student’s basic understanding of mutual fund investments.
  • Create an assignment where students use the MFEA fund screener to evaluate one or more mutual funds.

Discussion Questions

  1. Often beginning mutual fund investors, just invest their money without really learning about mutual fund investments or specific funds?  Why is this a flawed approach?
  2. There are many investment websites that will help you learn about mutual funds and also evaluate different funds.  What factors make one website better than another website?
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Zacks #1 Ranked Healthcare Mutual Funds

When markets are passing though choppy waters, investors often rely on the healthcare sector to safeguard their investments.

Healthcare funds are often considered a safe investment because the demand for healthcare services does not vary with market conditions or upturns or downturns in the economy.  Many of the companies in the healthcare industry, often found in healthcare funds, also pay regular dividends which can help offset a decline in a fund’s share price or increase total return for this type of fund investment.

In this article, Zacks Investment Research, provides a brief description of the five top rated funds listed below

  • Fidelity Select Biotechnology (Symbol FBIOX)
  • Prudential Jennision Health Sciences A (Symbol PHLAX)
  • T.Rowe Price Health Sciences (Symbol PRHSX)
  • Fidelity Select Pharmaceuticals (Symbol FPHAX)
  • ProFunds Biotechnology UltraSector (Symbol BIPSX)

For more information go to

http://finance.yahoo.com/news/zacks-1-ranked-healthcare-mutual-221117226.html

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Discuss the types of research provided by professional advisory services for fund investors.
  • Help students understand why the healthcare industry may be a safe haven in troubled economic times.
  • Assign one or more of the funds described in this article for more in-depth student research.

Discussion Questions

  1. Why would the healthcare industry be considered a safe haven in troubled economic times?
  2. Do you think this type of fund could help you obtain your personal investment goals?
  3. How would you research one of the specific healthcare funds described in this article?
Categories: Chapter_13, Investments, Mutual Funds | Tags: , , , | Leave a comment

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