Part 1
| Category | Fidelity Investments | Amount Invested Per Month | Number of Years To Invest | Ten-year annualized return | Projected Fund Value From Bankrate.Com |
| Large Cap | Fidelity Contrafund Fund | $5,000 | 10 | 15.57% | $1,339,704.29 |
| Mid Cap | Fidelity Advisor Mid Cap 2 Fund Class Z | $5,000 | 10 | 8.81% | $939,273.53 |
| Small Cap | Fidelity Advisor Small Cap Growth Fund Class Z | $5,000 | 10 | 15.28% | $1,319,280.20 |
| Foreign | Fidelity Overseas Fund | $5,000 | 10 | 8.94% | $945,641.12 |
| Total value from all investments | $20,000 | $4,543,899.14 |
Fidelity Contrafund Fund
The ten-year annualized return for the large-growth fund is 15.57%. For a ten-year period, the beta of the fund is 0.96, meaning that it is less risky than the market. However, the low risk also indicates that the fund has a low return. The fund's mean annual return is 1.29%, which is greater than the category’s average return amounting to 0.01%. The mutual fund has an expense percentage of 0.85%. This ratio is suitable since it falls within the recommended average range of between 0.75% and 1.25%. The five leading holdings include Amazon.com Inc., Facebook Inc., Microsoft Corporation, Berkshire Hathaway Inc., and Salesforce.com Inc.
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Fidelity Advisor Mid Cap 2 Fund Class Z
The 10-year rate of this fund is 8.81%, while its 10-year beta is 1.15, meaning that fund is riskier or more volatile than the market. However, its expected return is also greater than that of the market. Its mean annual return of 0.82% is greater than its average category return of 0.01%. The express percentage is 0.63%, a value which is suitable for the investors due to low expenses and, as a result, high-profit potential. The top holdings of the fund incorporate Activision Blizzard Inc., Electronic Arts Inc., Deckers Outdoor Corporation, Akamai Technologies, and The AES Corporation.
Fidelity Advisor Small Cap Growth Fund Class Z
The ten-year rate of the small-growth fund is 15.28%, with its ten-year beta being 1.15, meaning that its risk and return are greater than those of the market. The mean annual return of the fund, which is 1.32%, is also greater than the average category return, which is 0.01. The fund's express percentage is 0.93%, a figure which falls within the recommended range. The top holdings incorporate iShares Russell 2000, Insulet Corporation, Generac Holdings Inc., FTI Consulting Inc., and CACI International Inc.
Fidelity Overseas Fund
The ten-year rate of the international fund is 8.94%, while its beta is 0.99 indicating that its level of risk and return are below those of the market. The mean annual return of 0.82% is above that of the category average, which is 0.01%. The express percentage of 0.90% falls within the recommended limits of 0.75% and 1.25%. The top five holdings incorporate Nestle, Roche Holding AG, SAP, LVMH, and ASML Holding.
Comments
The aggregate return amount, which totals to $4,543,899.14, is high, and, as a result, the investment is worthwhile. As a future manager, I would reinvest the total amount earned into a large-growth fund to ensure high returns. The amount to be withdrawn is shown below.
| Total interest | $4,543,899.14-($5000*12*10*4)=$2,143,899.14 |
| Withdrawn interest | 0.06*2143899.14=$128,633.95 |
The withdrawn interest may be insufficient to meet the operational costs of the business.
The investment strategy guarantees the long-term survival of the enterprise since the return is high to ensure the business caters to its operational expenses.
Self-financing, increases the chances of survival of the business, in the long run, since the entity can utilize its finances instead of relying on external debt. In this case, the entity will have no liabilities in its balance sheet and no interest settlements in its income statement.
| Projected job name | Accountant |
| Projected annual starting salary | $50,000 |
| 15% of the salary | $7,500 |
| Monthly amount to be invested | $7,500/12=$625 |
| Fund investment amount | $625/4=$156.25 |
Part 2
| Category | Fidelity Investments | Amount Invested Per Month | Number of Years To Invest | Ten-year annualized return | Projected Fund Value From Bankrate.Com |
| Large Cap | Fidelity Contrafund Fund | $156.25 | 40 | 15.57% | $4,185,076.86 |
| Mid Cap | Fidelity Advisor Mid Cap II Fund Class Z | $156.25 | 40 | 8.81% | $625,103.72 |
| Small Cap | Fidelity Advisor Small Cap Growth Fund Class Z | $156.25 | 40 | 15.28% | $3,850,952.25 |
| Foreign | Fidelity Overseas Fund | $156.25 | 40 | 8.94% | $647,574.59 |
| Total value from all investments | $625 | $9,308,707.42 |
The aggregate value of the investments will amount to $9,308,707.42. The largest proportion of the return is attributed to the large-growth fund, which has the greatest ten-year annualized return out of all the four funds. The small-growth mutual fund has the second-biggest ten-year annualized return meaning that its amount of return is the second-highest in the list.
In a bid to ensure consistent saving, one should establish a target savings amount computed as a percentage of the total salary. Such a target ensures that the individual has a goal, and he or she is likely to be disciplined due to the goal (Lim et al., 2014). Another way of ensuring regular saving is by minimizing credit card debt. Reducing one's obligations to lenders ensures that he or she has sufficient money to save and invest.
The primary reason why individuals are not saving nowadays is the fact that they do not earn enough to make savings. In addition, numerous individuals believe that they can rely on social security only to settle the bills in retirement (Barry, 2018). Another key reason is that many jobs do not provide retirement plans.
Retirement savings will allow me to prolong my family tree. The huge amount I earn from now until retirement is sufficient to cater to the needs of the future generations of my family tree.
References
Barry, M. P. (2018). Retirement savings policy: Past, present, and future . Walter de Gruyter GmbH & Co KG.
Lim, E., Choi, E. H., & Leong, K. (2014). Personal Investing: How to invest your money for consistent returns . Marshall Cavendish.
