Index Fund Investing Let's continue with some more specifics :) Let's pretend that at the age of twenty we start to invest in Index Funds which is pretty much "buying the entire stock market." Think of it as a giant mutual fund. Let's pretend that in our twenties we invest one hundred dollars a month into an index fund that pays us 8% APR compounded monthly. Let's pretend that we make this a habit we do it for ten years. Then in our thirties we invest two hundred dollars a month. Let's

The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely.) Mutual Fund $ Rate of Return Fidelity Growth Company 14.83% Vanguard 500 Index 13.25% PIMCO Total Return Stock fund 2.77% Type Stock fund For the past 15 years you have been depositing $600 per month in the PIMCO bond fund, and you have now transferred your current balance to the Vanguard bond fund, where you plan to continue depositing $600 per month until you retire in 20 years. How much can you anticipate having in the investment when you retire? HINT [See Example 1.] (Round your answer to the nearest cent.) Vanguard Total Bond Market Index Bond fund 2.67% Bond fund

A mutual fund with K100 million in assets at the start of the year and with 10 million shares outstanding invests in a portfolio of stocks that provides no income but increases in value by 10 %.Required:(i) What is the rate of return in the fund?

Mutual funds can be classified basing on execution and operations or basing on yield and investment pattern, briefly describe the classification of mutual funds from these two basis 28. With examples, briefly discuss the importance of mutual funds to an economy 29. Akiba Unit Trust Fund has a prospective average annual return of 8% over the next 20 years. Estimate the value of a Tshs 20,000,000 investment after 20 years when the returns are i. Tax-free, (3 Marks) ii. Subject to a deferred tax of 30% iii. Subject to an annual tax of 25%  30. Briefly analyze the difference between defined benefit plan and defined contribution plan as applied in the pension funds 31. Mr Domokaya works as Director of finance in TPL Ltd a publicly owned institution where He earns a salary of Tshs 6,000,000 per month. Mr Domokaya expects to hold that position for the next 40 years before retirements. After retirement, Mr Domokaya expects to live for further 30  years. Mr Domokaya wishes to…