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-   -   Fund returns and basis points (https://www.askmehelpdesk.com/showthread.php?t=612136)

  • Nov 14, 2011, 10:27 AM
    knovo
    Fund returns and basis points
    You have $10,000 to invest in your
    401-K plan. Here are your only choices:

    Morgan Stanley S&P 500 Index Fund
    Vanguard S&P 500 Index Fund
    Schwab S&P 500 Index Fund
    Fidelity S&P 500 Index Fund

    All four funds have the same one
    year, three year and five year returns.

    "Life of fund returns" for each fund are as
    follows:

    Morgan Stanley = 12.5%
    Vanguard = 11.9%
    Schwab = 13.2%
    Fidelity = 14.9%

    Annual fees for each fund are as follows:

    Morgan Stanley = 36 basis points
    Vanguard = 18 basis points
    Schwab = 25 basis points
    Fidelity = 27 basis points

    What is the best way to invest the
    $10,000?



    a. Equally split among all four funds.

    b. 100% in Morgan Stanley.

    c. 100% in Vanguard.

    d. 100% in Schwab.

    e. 100% in Fidelity.
  • Apr 12, 2012, 09:19 AM
    SQUISHY33
    Aa

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