Investment objective
Investment objective of DrO’Hara is to maximize the returns on his early saving, currently DrO’Hara on dollar 350 Thousand per year from his practice and if we assume that he is able to save around 20% of his annual earnings which implies that doctor O’Hara will have dollars 70000 per year to invest. Doctor O’Hara has two major events to come in the coming financial year which would consume dollar 30000 in his wedding and Dollar 60000 for his nephews education. As we can observe that DrO’Hara already have dollar 350,000 investment account which when added with this years of saving of dollar 70000 the total investment pool of DrO’Hara increases to dollar 420000.Now out of $420,000 doctor O’Hara will have to transfer dollar 30000 for his wedding and honeymoon and dollar 60000 for his nephews education does amount remaining for investment with DrO’Hara remains to be $330,000.
Now the major investment objective of DoctorO’Hara is to grow his fund bye investment in moderately growing funds which bears average risk. Second investment objective of DrO’Hara is 2 on the return higher than the certificate of deposit with taking minimum amount of Risk for the fund which has kept for his nephew’s education.Third objective of O’Hara is to earn minimum 9% return on his savings this year in long term.
On the basis of demand of growth in funds and the capacity to take this v have suggested
T. Rowe Price Blue Chip Growth Fundbecause this one has provided higher returns and is expected to grow at a higher place in future.
Holdings
Company% Net AssetsStock Returns1-year
Stock Returns
5-year
Amazon.com IncAMZN
8.85
87.04%
42.18%
Facebook Inc AFB
5.26
32.35%
46.82%
Microsoft CorpMSFT
4.51
52.05%
31.32%
Alphabet Inc CGOOG
4.36
37.72%
—
Alibaba Group Holding Ltd ADRBABA
3.69
83.25%
—
The Priceline Group IncPCLN
3.57
—
—
Visa Inc Class AV
3.24
38.69%
27.37%
Boeing CoBA
2.89
95.57%
35.33%
UnitedHealth Group IncUNH
2.78
32.64%
34.51%
MastercardInc AMA
2.63
64.48%
29.79%
Asset type
Type / % Long / % NetCash / — / —
Stocks / 92.1 / 92.1
Others / 0.2 / 0.2
Foreign Bonds / — / —
Foreign Stocks / 7.7 / 7.7
Convertible / — / —
Preferred / — / —
Performance
Management fees
Fees paid for management and distribution over the fund's prior fiscal year. Actual fees represent a close approximation of the true cost to shareholders.
Risk
Volitility measures reflect the uncertainty or risk of change in a security's value.Standard Deviation?13.393
Mean?1.548
Sharpe Ratio?1.354
Treynor Ratio
Fund / Average Annual Return / Beta / Rf / Treynor ratio = (Ra-Rf)/betaFranklin Domestic Fund / 0.078 / 0.95 / 0.04 / 0.04
Scudder Pacific Basin Fund / 0.125 / 1.25 / 0.04 / 0.068
American Mortgage Securities Fund / 0.075 / 0.25 / 0.04 / 0.14