Do you agree with the james family''s investment strategy

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Question - The James family have been evaluating methods for investing money that will ultimately be used to support their twin daughters' college education, in another ten years. They have concluded that a mutual fund is better suited to their needs than investing in individual stocks or individual bonds. They are now seriously considering a biotechnology fund, which is composed of numerous biotechnology stocks. They have heard that biotechnology stocks can experience very high returns in some periods. They are not concerned about some biotechnology stocks performing poorly in any period because the mutual fund that they are considering contains multiple biotechnology stocks and is therefore diversified.

Required - Do you agree with the James family's investment strategy? What advice will you give them regarding mutual fund investment?

Reference no: EM133115677

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