1. Insights to Diversification
Welcome to The Stock Market Game
Beyond The Basics
Insights to Diversification
1. Motivation for All SMG Investors!
2. SMG Diversification & Capitol Hill Challenge
3. Mutual Fund & ETF Breakdown Comparisons
4. SMG Team Investment Profile
5. Building SMG 10 Week or Year Long Portfolios

2. Formative Learning for The Next Generation of America’s Investors
Formative Learning for The Next Generation of America’s Investors! Our Challenge Investor Goal Learning Practice

3. 2016 Summer Savings $500.
Rule of 72
Save at Credit Union Invest in Stocks or Funds
Rate of Return 0.20% Rate of Return 12%
$ $500.
$1, $1000.
*17 Year Old Investment Value Age $128,000.

4. How will Students Diversify their Portfolios?
Buy or Sell Stocks Buy ETF’s or Mutual Funds IOU Bonds
Long or Short Positions Diversification & Safety Gov. Muni. Corporate
How will Students Diversify their Portfolios?
$100,000. Equity $50,000. Margin Buying Power $150,000.

5. 2016-2017 SMG Diversification Challenge!
Here’s how it works:
Students receive an additional account to work individually or in teams to develop a diversified investment portfolio that must include a combination of stocks, mutual funds, and/or bonds (must contain two out of the three asset classes).
For those students who love the traditional SMG program, this is a great opportunity for them to work individually (possibly on our new mobile app!) and explore their own investment strategy outside of class!  (think of it as an additional trading portfolio beyond the regular SMG game)
Teams/students must buy a minimum of three different stocks/mutual funds/and or bonds during their game session.  Students do not need to hold them for any specific amount of time.  They can sell their positions at any point. 
Session Date:  Fall 2016 semester  and Year Long session (please realize you can participate in multiple Stock Market Game sessions)
Prizes will be awarded to the top overall team from the “Diversification Game” (elementary, middle, and high school teams will compete in the same region for this competition).

6. Capitol Hill Challenge History & Experience
* Began in 2004 with today over 3,000 matches with MOC
* 2016 Matches with 535 MOC and over 5,350 teams competing
* Over 80,000 students participating
* The top 10 CHC teams will win a trip to Washington, D.C
* Meet their Member of Congress and be recognized at an awards
reception on Capitol Hill
*Meet with business, government, and education leaders to learn
about fiscal policy making, the role of the capital markets, and
global economic trends
*Opportunity to tour financial landmarks and national monuments.

7. Important Rules for CHC
* February 26th 4pm Diversification Requirement/Rosters
* All Teams must have a Stock, Mutual Fund & Bond Position
Teachers must submit Roster of Teams to Nancy Kahn
* $100,000. Equity $50,000 7% Apr. diversified positions of 15% of Buying Power = Position Max of $10,000
Including commission cost 1%
* No Penny Stocks less than $3.00
* Mutual Funds End of Day Price Transactions
* ETF’s are traded as Stocks
* Bonds purchased in $1,000. increments Corporate/Municipal, Treasury Bonds $100. increments
* End of Day Stock & ETF buying
* Short Selling & Short Covering

8. Building A Capitol Hill Challenge Portfolio
* Team Diversification Decision Making
Stocks 60%
Mutual Funds 20%
Bonds 20%
* This Portfolio models a Balanced Fund or ETF
* Stock positions may be selected from NYSE or NASDAQ
Strategy & Sample Portfolio
Step #1 Research ETF’s & Mutual Funds First , Level of Risk?
Step #2 Select Bonds , Corporate Bonds more risk, but higher %
Step #3 Research Stocks & decide investment strategy options
Buy from top 5 companies Fund & ETF managers have purchased
Buy from news on earnings or analysis stock upgrades
Buy Industry Sector stocks or funds such as Health Care/Technology
See sources for research and Tips at Wicked Smart Investments
Vanguard Mutual Funds Janus Funds NYSE Bond List
Sample Portfolio
Stocks 60% Mutual Funds 20% Bonds 20%
AAPL VMRGX CVS43
SWKS JAVLX BAC19K FB UA
NIKE
MSFT
JBLU
PFE
FHLC

10. *Buying and Selling ETFs are flexible and easy to trade.
*Investors buy and sell them like stocks, typically through a brokerage account.
*SMG Trade Page
Stocks * Mutual Funds Bonds
*Investors can also employ traditional stock trading techniques; including stop orders, limit orders, margin purchases, and short sales using ETFs.
*They are listed on major US Stock Exchanges.
ETFs are subject to risk similar to those of stocks including those regarding short-selling and margin account maintenance.
*Ordinary brokerage commissions apply.
Fidelity ETF's

11. Diversification & Safety Long Term Mutual Funds
SMG Portfolio, 403B Annuity, Traditional/Roth IRA, 401K Plan
Name of Fund Mutual Fund Video Mutual Fund Categories Symbol *Growth Funds Fund Manager *Income Funds Category *Balanced Funds Objective & Risk *G & I Funds Maintenance Fees *Sector Funds Top 5 Positions *Global Funds Sector & International Breakdown *Bond Funds One Year Performance *Money Market Funds Five Year Performance *Specialty Funds Performance Since Inception Vanguard Mutual Funds Benchmark Comparison S&P 500 The Janus Funds

12. The Gifts of Mutual Funds & ETF’s!
Janus Global Technology
JAGTX
Janus Global Technology Fund
Fidelity Health Care ETF
FHLC
Windsor II Fund
VWNFX
Real World Time Management
Do Investors Have Time to Manage Individual Stocks? Professional Money Management
2. Instant Investment Diversification & Safety
3. Intermediate & Long Term Investment Goals Success!

13. Wicked Smart Investments Mutual Fund & ETF Breakdown Comparison
Name of Fund/Company
Symbol
Price NAV
Fund Manager Highlights
Category of Fund
Objective & Risk Level
Name of Fund Company
Maintenance Fee in NAV
Top Five Positions with % 1. 2. 3. 4. 5.
Fund Performance
1 Year
5 Year
Since Inception
Benchmark Comparison
Ratings & Comments to Buy

14. SMG Aggressive Mutual Fund & ETF Sector Categories
Airlines / Defense
Health Care
Technology
Financials
Auto Manufactures
Basic Materials
Consumer Goods
Energy
Google Finance
Examples of Diversified and Risk Tolerance of Portfolios
Very Conservative
Conservative
Moderate
Speculative
Very Speculative
*15 – 20 stocks
*Each purchased with $5, or less.
*5 to 10 Industries/Sectors
* All Lg. Cap Companies
*12 – 15 stocks
*Each purchased between $5,000 & $7,500
*5 – 10 Industries/Sectors
*10 – 12 stocks
*Each purchased between $7,500 & $10,000
*5 to 7 Industries/Sectors
*Company size
5 Lg. Cap
4 Mid Cap
3 Sm. cap
*7 – 10 Stocks
*Each purchased between $10,000 - $20,000
*3 – 4 Industries/Sectors
*Small Cap Companies
*4 – 5 Stocks
*Each purchased around $20,000
* 1 -2 Industries/Sectors
*All Small Cap Companies

15. Portfolio Diversification Risk vs. Reward Options
Very Conservative
Conservative
Moderate
Speculative
Very Speculative
Stocks 10%
ETF’s 20%
Mutual Funds 30%
Bonds 40%
Low Risk
Balanced Fund 60/40
Team Portfolio $100,000.
Apple $10,000.
Health Care ETF $20,000.
Utilities Fund $30,000.
Gov. Bonds $40,000.
Rate of Return Potential 5%
Stocks 20%
ETF’s 20%
Mutual Funds 20%
Nike $10,000.
General Dynamics $10,000.
Health Care ETF $10,000.
Communications ETF $10,000.
Balanced Fund $20,000.
Corporate Bonds $10,000.
Gov. Bonds $20,000.
Municipal Bonds $10,000.
Rate of Return Potential 7%
Stocks 40%
Bonds 20%
Medium Risk
Income Fund NYSE/S&P 500
Tesla $20,000.
Ford $20,000.
Consumer Staples ETF $20,000.
Health Care Fund $20,000.
Gov. Bonds $10,000.
Rate of Return Potential 10%
Stocks 70%
ETF’s 10%
Mutual Funds 10%
Bonds 10%
High Risk
Growth & Income Fund
Jet Blue $30,000.
Skyworks $20,000.
Electronic Arts $20,000.
Technology ETF $10,000.
International Fund $10,000.
Rate of Return Potential 15%
Stocks 85%
ETF’s 5%
Mutual Funds 5%
Bonds 5%
Aggressive Risk
Growth/ NASDAQ Composite
Valeant $15,000.
Amgen $20,000.
BioMarin $20,000.
Celgene $20,000.
Heath Care ETF $5,000.
Life Sciences Fund $5,000.
Corporate Bond $5,000.
Rate of Return Potential 18%

16. The Five Criteria Before You Save or Invest. 1
The Five Criteria Before You Save or Invest! 1. Safety Stock, Mutual Fund, Bond? 2. Liquidity 3. Rate of Return 4. Fees / Commissions 5. Tax Status A. Taxable B. Tax Sheltered C. Tax Exempt

17. Rutgers University Investment Risk Tolerance Quiz
SMG Student/Team Profile
Student/Team: ________________________
CONSERVATIVE
AGGRESSIVE
MODERATE
Rutgers University Investment Risk Tolerance Quiz
Directions: Have a team discussion on the level of risk that the SMG portfolio will have. Decide by team majority what your investment strategy will be. Indicate by placing $ signs in the box above which risk level has been decided on.
 Team Notes:
EdVillage4me

18. Building The Diversified SMG Portfolio for Short Term Success Fall or Spring
Conservative: Stock ______ % 1. 2. 3. 4.
Moderate: Stock _______%
Aggressive: Stock ________%
Conservative: Mutual/ETF ______%
Moderate: Mutual/ETF _______%
Aggressive: Mutual/ETF _______%
Conservative: Bond Choice _____%
Moderate: Bond Choice ______%
Aggressive: Bond Choice ______%
Wicked Smart Investments

19. Building The Diversified SMG Portfolio for Short Term Success
Year Long
Conservative: Stock ______ % 1. 2. 3. 4.
Moderate: Stock _______%
Aggressive: Stock ________%
Conservative: Mutual/ETF ______%
Moderate: Mutual/ETF _______%
Aggressive: Mutual/ETF _______%
Conservative: Bond Choice _____%
Moderate: Bond Choice ______%
Aggressive: Bond Choice ______%
Wicked Smart Investments

20. Many Happy SMG Sunsets To You. Teacher Questions
Many Happy SMG Sunsets To You! Teacher Questions? Wicked Smart Investments