A Comparative Analysis of Mutual Funds With Respect to IL Co
Junior Achievement Investment Strategies Program LESSON 2 – Mutual Respect.
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Transcript of Junior Achievement Investment Strategies Program LESSON 2 – Mutual Respect.
Junior Achievement Investment Strategies Program
LESSON 2 – Mutual Respect
BUSINESS EDUCATION FOR YOUTH | jabc.org
SLIDE 2
LESSON 2 - Mutual Respect
Canada’s Talent
Bombardier Inc.
Suncor Energy
BlackBerry
How did your company do this week?
BUSINESS EDUCATION FOR YOUTH | jabc.org
SLIDE 3
LESSON 2 - Mutual Respect
Canada’s Talent
Value of 100 Shares
Company 1: Company 2: Company 3:
Value Week 1
Value Week 2
Value Week 3
Value Week 4
BUSINESS EDUCATION FOR YOUTH | jabc.org
SLIDE 4
How long will it take to double my money at a 3% rate of return?
LESSON 2 - Mutual Respect
Rule of 72
BUSINESS EDUCATION FOR YOUTH | jabc.org
SLIDE 5
Divide the number (72) by the rate of return (3). Therefore it will take (24) years to double the investment.
LESSON 2 - Mutual Respect
Rule of 72
BUSINESS EDUCATION FOR YOUTH | jabc.org
SLIDE 6
LESSON 2 - Mutual Respect
Stocks and Bonds
BUSINESS EDUCATION FOR YOUTH | jabc.org
SLIDE 7
LESSON 2 - Mutual Respect
Investment Vehicles
Bonds Real Estate
GICs Art
Penny Stocks Mutual Funds
Blue Chip Stocks RESPs
ETFs RRSPs
BUSINESS EDUCATION FOR YOUTH | jabc.org
SLIDE 8
Research 3 investment vehicles to learn the advantages and disadvantages of each investment.
LESSON 2 - Mutual Respect
Investment Vehicles
BUSINESS EDUCATION FOR YOUTH | jabc.org
SLIDE 9
Before you make financial decisions, you should consider a few factors:
• Personal financial goals• Risk vs. Return• Diversification
LESSON 2 - Mutual Respect
Investment Vehicles
BUSINESS EDUCATION FOR YOUTH | jabc.org
SLIDE 10
What are your personal financial goals?
LESSON 2 - Mutual Respect
Investment Vehicles
BUSINESS EDUCATION FOR YOUTH | jabc.org
SLIDE 11
LESSON 2 - Mutual Respect
BUSINESS EDUCATION FOR YOUTH | jabc.org
SLIDE 12
Define
Diversification
LESSON 2 - Mutual Respect
Investment Vehicles
BUSINESS EDUCATION FOR YOUTH | jabc.org
SLIDE 13
Chin has decided to buy his first car. He has $2,000 ready for a down payment but can’t seem to find the car of his dreams.
Chin does not consider himself a risk taker and wants to feel secure about his investments.
LESSON 2 - Mutual Respect
Advise and Invest
BUSINESS EDUCATION FOR YOUTH | jabc.org
SLIDE 14
Shivi’s parents want to save for an RESP for Shivi and estimate that they will need $20,000 in 10 years time.
Shivi’s parents would rather risk a bit of money in hopes for a higher return, as long as they can access his money immediately.
LESSON 2 - Mutual Respect
Advise and Invest
BUSINESS EDUCATION FOR YOUTH | jabc.org
SLIDE 15
LESSON 2 - Mutual Respect
Advise and Invest
Nikki’s generous aunt gave her $5,000 for her 18th birthday. She would like to risk a bit to see how much money she can make from this gift.
Nikki feels that she is young and is willing to try a few high-risk investments just for fun.
BUSINESS EDUCATION FOR YOUTH | jabc.org
SLIDE 16
There are hundreds of mutual funds available in Canada.
What are they? Why can they be a good way to make a return on your investment?
LESSON 2 - Mutual Respect
Mutual Respect
BUSINESS EDUCATION FOR YOUTH | jabc.org
SLIDE 17
Balanced
Bond
Socially Responsible
Money Market Sector
LESSON 2 - Mutual Respect
Mutual Respect
BUSINESS EDUCATION FOR YOUTH | jabc.org
SLIDE 18
Research securities that you will include in a mutual fund.
Do you want a socially responsible fund; bond fund, sector fund, etc.?
LESSON 2 - Mutual Respect
Mutual Respect