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Monday, September 25, 2006
Pros And Cons of Life-Cycle Mutual Funds
In this Bankrate.com article looking at the advantages and disadvantages of life-cycle funds, Don Taylor, Ph.D., CFA, CFP, said that "life-cycle funds are a good idea for investors who don't want to take an active role in managing their investments." However, he added, "Two competing life-cycle funds with the same target dates... can have very different approaches to planned asset allocations. There's also an argument against this style of funds because the more conservative asset allocation might not adequately protect retirees from inflation eroding the purchasing power of their investments."
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Posted by KenW
Wednesday, September 20, 2006
Lower Risk Global Mutual Funds Profiled
Fund Spy Kai Wiecking dispels the myth that "foreign stocks--and therefore mutual funds--are inherently more risky than their domestic equivalents," in this article from Morningstar. Wiecking screens world-stock mutual funds and spotlights three low-risk options, including one no-load fund, the Mutual Discovery fund (MDISX), and mentions two lower risk bond options, Payden Core Bond (PYCBX), a domestic fund, and American Century International Bond (BEGBX) a world-bond fund which might be combined to create "an all-weather portfolio consisting of just three funds."
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Posted by KenW
Friday, September 15, 2006
Buy-And-Hold Works For Baron Asset Fund
Britt Erica Tunick covers the slow and steady strategy of Baron Asset Fund's managers, one that has helped them earn a five-year average return of 11.47%, a three-year average return of 18.98%, and a 2005 annual retun of 12,50%. In this Investor's Business Daily article, she said, "The managers of the $4.17 billion [no-load] fund seek growth stocks that they can buy and hold. They keep each investment for an average of five years. Most funds in its group hold stocks for an average of six to seven months."
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Posted by KenW
Tuesday, September 12, 2006
Few Top Performing Mutual Funds Repeat Past Performance, Says S&P
The latest Standard & Poor's scorecard that evaluates consistency of mutual fund performance shows that very few funds manage to consistently repeat top half or top quartile performance. Over five-years ending June 30, 2006, only 58 (10.8%) large-cap funds, 12 (7.9%) mid-cap funds, and 19 (7.7%) small-cap funds maintained a top-half ranking over five consecutive 12-month periods. A total of 3 large-cap funds (1.12%), zero mid-cap funds and 1 small-cap fund (0.81%) maintained a top-quartile ranking over the same period. Longer time horizons are also covered in the report.
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Posted by KenW
Tuesday, September 05, 2006
New Mutual Fund Picks and Pans from Morningstar
Russel Kinnel of Morningstar recently announced additions to the firm's Fund Analyst Picks and Pans, that is Morningstar's most favorite and least favorite funds, in this article from the Lincoln Journal Star. New Fund Analyst Picks include one no-load fund and one load fund, Loomis Sayles Global Bond (LSGLX) and Oppenheimer International Growth (OIGAX), and Pans included one no-load fund and one load fund, Midas Special (MISEX) and Federated Limited Term Municipal (LMINX), respectively.
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Posted by KenW
