Mackenzie Financial launched its Ultimate Investment Challenge today, a six-month educational investment competition.

The challenge offers entrants a chance to win prizes totaling $50,000 by building the greatest risk-adjusted portfolio returns with their choice of five Mackenzie mutual funds.

It asks entrants to build an imaginary $100,000 portfolio of five out of 54 Mackenzie mutual funds. Entrants will allocate $20,000 of imaginary money to each of their five funds. The Challenge will test investors’ portfolio building skills, as well as educate investors about diversification, asset allocation and the benefits of investing for the long-term.

A Grand Prize of $25,000 will be awarded to the entrant with the highest Sharpe Ratio — a measure of return relative to the risk taken — as at the close of the TSE on September 27. Second and third prizes of $15,000 and $5,000 respectively, will also be awarded to entrants with the second and third highest Sharpe Ratios. A $1,000 random draw prize will be awarded at the end of each month for five months from April to August.

“We created this six-month challenge because there are so many contests that focus on day-trading and short-term thinking,” said Phil Cunningham, president, Mackenzie Financial Services Inc. “At Mackenzie, we take a different view – a long-term view geared toward portfolio construction, asset allocation and proper diversification.”

Full challenge details will be available in the National Post and online at www.mackenziefinancial.com/challenge on February 23. Entrants must choose and register their portfolio by the March 31 deadline in order to qualify.