Creating and Managing a SMIF Club That Invests Exclusively in Mutual Funds

Abstract

Extant literature suggests that many student-managed investment funds (SMIFs) restrict membership to a few knowledgeable students, develop skills unevenly across participants, and lack formal organization and/or execution. The reality is that most individuals and many financial advisors recommend investing through mutual funds for retirement, yet most SMIFs are designed for investing in individual securities rather than in mutual funds. This article fills this void by providing a detailed framework of goals, processes, and solutions for establishing a SMIF focused exclusively on mutual fund investments that is appropriate for all undergraduate business majors. The design here is appropriate for an audience without prior investment expertise and leads to competency in mutual fund analysis, selection, and asset allocation decisions.