Suppose you graduated from XXX university, and have gained a few years’ experiences working
in the financial industry. Feeling excited about the investment opportunities, you are
thinking now it’s good time to start up your own investment shop. In particular, you
would like to set up an investment fund that pursues your favorite investment
strategies. To that end, you need to draft the Prospectus for your fund “XYZ.”
Your Prospectus should have the following key components:
- What is the investment objective?
- What are the principal investment strategies? Explain how and why they work.
- What are the principal investment risks?
What is the historical performance of the trading strategies? Backtest the
performance of the strategy in the past ten years.
- What are the fee component and schedule of your fund?
This project requires a substantial amount of work. I encourage you to work on the
project immediately after you think through the process. The report should contain
approximately 10 pages maximum, including tables and figures (double-spaced,
singled-sided, minimum 12-point font Times New Roman, 2.5cm margin).
Note: 1. There are many samples of fund prospectuses available online. You are
encouraged to use them as reference. As a few random examples, you may find the
2. The investment world is highly competitive. To gain an edge, you are
encouraged to innovate in your investment strategies. You can either specialize in one
investment strategy or diversify across a number of trading strategies.