Response to the following problem:
Imagine that you have just inherited $50 000 from a rich relative. Now you are faced with the ‘problem' of how to spend it. You could use it as a deposit on a home unit, or you could buy that sports car you have always wanted. Or you could build a managed fund portfolio. After some soul-searching, you decide to do the latter: to build a $50 000 managed fund portfolio.
Using actual managed funds and actual quoted prices, come up with a plan to invest as much of the $50 000 as you can in a portfolio of managed funds.
Be specific! Briefly describe your planned portfolio, including the investment objectives you are trying to achieve.