Task:

1. Download the "Data file_mutual funds.xlsx" from Canvas->Assignments->Group Report 2.

2. Select five mutual funds and form an equally weighted portfolio of mutual funds. Estimate the portfolio's annual returns from January 2018 to December 2021, adjusting for the NZ stock index returns.

3. In your report, you must explicitly state the names of the selected funds and fill in the following table on the first page of the report:

4. Discuss the performance of your fund portfolio during the period, including any significant trends and changes in performance.

Formula:

Market adjusted return is a return minus the corresponding period market return. For example, if the return in January is 5% and the market return in January is 3%, then the market-adjusted return in January is 5% - 3% 2%.

To convert monthly return to annual return: for example, if x1, x2,..., x12 are the market- adjusted returns in months one, two,..., twelve, respectively, then the annual market-adjusted return in this period is [(1+x1)*(1+x2)*...*(1+x12)] -1. This formula takes into account the compounding effects over the course of the year.