Stock investemnt analysis

Document Type:Coursework

Subject Area:Business

Document 1

Five hundred, sixteen of the high ranking blend funds were evaluated by the U. S News. This ranking has been established on the grounds of the ratings of the top most fund industry researchers. FLCSX was ranked position seventeen (US News and World Report, 2012). Following a year difference of 10, this fund has managed to give back 8. Sector funds are more volatile than funds holding a diversified portfolio of stocks. The funds are invested in the stocks of a particular part of the economy for instance, the financial, utilities, energies, and health care. Among the top ranking overweight ranks in the fund was JPMorgan Chase. There was noted an 8% increase in the shares of this bank during the quarter. JPMorgan Chase has for long been known to be successful in the bond market.

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Furthermore, the notable increase in the sales as compared to the previous year is what aided Lowe’s in surpassing the final presumption of the analysts (FMR LLC, 2013). When it comes to the external markets, there is a high possibility for the stock market becoming strained. At times, the market can even go down. This decline can be attributed to a variety of reasons, such as, response to the political, regulatory, market, or economic developments of the country. To be noted too is the fact that foreign security has a higher possibility of more risks such as interest rate as well as currency exchange rates. This is a measurement of how the stock fund is performing is compared to how a benchmark index is performing and how close these performances are.

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If it measured 1. 00 then this would prove that each of the FLCSX’s fluctuations is accounted for by performance fluctuations of the index. If it measures. 98 then this would indicate that it was not only the market factor that affected the fund’s performance, rather, several other factors were into play. Mr. Fruhan should continue analyzing the fund with the intention of finding more ways which can contribute to an increase in capital and at the same time reducing unnecessary risks. This goal may be achieved by diversifying the portfolio. Performance of the fund can also be elevated by researching on how the portfolio of investments is picked as well as its maintenance. The benchmark can be used to assess performance; most funds use this approach (Rains & Gardner, 1995).

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This kind of evaluation is just due to the fact that it takes into consideration divergent factors. It also compares a fund to more than 1,500 funds with at least a three-year history (FMR LLC, 2013). There are around 208 holdings associated with FLCSX. Among these, the top ten are Apple, JPMorgan Chase, Wells Fargo, Chevron, General Electric, Google, Exxon Mobil, Comcast, Proctor & Gamble and Citi Group. These 10 companies represent 26. Upcoming markets have a larger number of people. China and India are known to be responsible for half of the earth’s population. With the industrialization of the economies of these countries, more opportunities are being created for more people to acquire better education and good salary employments. The result of this would be increased consumption (Ody).

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