Question

3) Assume you decide you should invest at least part of your money in large capitalization stocks of companies based in the United States. What are the advantage and disadvantages of choosing the Bledsoe Large company stock fund compared to the Bledsoe s

Answer 1

Answer:

Advantage : Outperforming the market

Disadvantage : Underperforming in the market

Explanation:

Advantages of choosing Bledsoe Large company stock fund

Bledsoe Large company stock fund is an actively managed fund hence there is the possibility of outperforming in the market as data has shown over the 10 years, when compared with Bledsoe S&P 500 index Fund.

While the disadvantage is also the possibility of underperforming in the market and this is because most mutual funds cannot sustain its outperformance of the market over a very long period of time.