Determining the expected rate of return

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Mr. X would like to invest rupees 1,00,000 in mutual funds for a period of one year. He has got the suggestion from his friend to invest in different types of mutual funds namely money market mutual funds (average return is 12%), ETFs (average return is 12.5%), and common mutual funds with varied features like balanced, and dynamic mutual funds (average return is 15%). He is expecting an average rate of return on his investment at 15%. you are requested to advise him that (i) in what way he can invest that money and why he has to choose such portfolio? (ii) in order to get the expected rate of return what techniques he has to follow?

Reference no: EM131061205

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