The Securities Industry Association (SIA) has added mutual funds to The Stock Market Game Program. Beginning with the fall 2004 semester, students using the SMG online simulation will be able to “buy and sell” shares of more than 17,000 mutual funds in addition to public company shares for their “portfolios.”
The ICI Education Foundation (an affiliate of the Investment Company Institute) is providing funding and materials to the Foundation for Investor Education to add the mutual-fund component to this educational program.
The SMG Program, administered by SIA’s Foundation for Investor Education, has reached nearly nine-million students in grades four through 12 since 1977. Currently, approximately 500,000 young people participate each year. Students invest a virtual “$100,000” in securities, gaining a hands-on introduction to the markets and critical lessons on the importance of saving and investment.
“Students’ learning experience is enhanced by the inclusion of mutual funds,” said Donna C. Peterman, chairman, Foundation for Investor Education, and senior vice president, PNC Financial Services Group. “With 48 percent of all U.S. households owning funds today, adding mutual funds makes the Stock Market Game Program even more relevant for tomorrow’s investors.”
“Including mutual funds in the Stock Market Game Program makes so much sense,” said Paul Schott Stevens, president of the Investment Company Institute. “Many families are using mutual funds to help finance college educations and the first investment for many young people will be a choice of funds in their 401(k) plan at work. This program provides an excellent opportunity for teachers, parents, and students to learn about this important long-term investment vehicle.”
In addition to providing funding, the ICI Education Foundation will also collaborate with The Stock Market Game Program on development of educational material, newsletters, and online tutorials.