Jessica plans to invest RM10,000in a stock mutual fund. She has a choice of investing in:

i)InterPac Dynamic Equity Fund - a no load fund with an annual expense ratio of 2%

ii)RHB Global Equity Yield Fund- a 2% load fund and annual expense ratio of 2.5%

Both funds have a Net Asset Value (NAV) of RM20 per share, and their stock portfolios are very similar in that they invests principally in stocks. The fund manager predicts each fund's NAV to be RM25 in 5 years at which time Jessica plans to sell her investment.

Required:

a)If the NAVs change as expected, show with calculation which fund would give Jessica the higher return. (10 marks)

b)Apart from (a) above, discuss what other factors Jessica should consider in assessing the performance of the two funds

c)Mutual funds are geared toward medium and long-term returns. If Jessica were to purchase the above mutual fund, discuss 5 circumstances under which she would be motivated to sell the funds earlier than planned