Investing in Mutual Funds - Outline

Slides are tagged by opening line.

1. “You have a good job” introduces mutual funds as an investment option.
2. “Individual stocks rise and fall unexpectedly” describes mutual funds and introduces diversification.
3. “Mutual Funds” describes why people want to diversify investments.
4. “A mutual fund is” describes how mutual funds work.
5. “The manager charges a fee” describes a variety of fees charged by fund managers.
6. “Here is an example of a fact sheet for a fund” asks students to find the fee structure on a fund.
7. “Let's take a closer look at the performance of this fund” looks at the performance of a fund over a few months.
8. “Based on that graph” shows how to calculate the profit, or growth of the fund over that period.
9. “You invested $2450” has students figure the APY of this investment.
10. “Now let's look at a longer investment period” does the same calculation over a year.
11. “How about even longer?” give students a chance to do the ten year calculation.
12. “For beginning investors” asks students to start comparing funds, including an advertisement to ponder.
13. “Money management is big business” looks at the performance of a managed fund.
14. “In order to avoid the expense ratio” describes index funds.
15. “Thus index funds have very low expense ratios” gives an example of one.
16. “How do these two funds compare?” shows performance of both on a single graph.
17. “It is now possible to buy and sell funds on the stock exchange” describes exchange traded funds, or ETFs.
18. “We are now ready to decide” introduces for options for investment and introduces a student spreadsheet exercise.
19. “Which option” describes how randomness is built into the spreadsheet.
20. “Assume now that you continue to invest” leads students into the exercise, and provides a video of the results of bad investing.