An Introduction to Mutual Funds
Today we will begin an examination of mutual funds. Why my interest in writing about mutual funds? First, mutual funds are extremely popular and there are many funds in existence. So whether you intend...
View ArticleMutual Fund Window Dressing
When analyzing mutual funds, reviewing fund holdings is useful to ensure adequate diversification within a fund, as well as between different funds. But you need to be certain that the holdings you...
View ArticleMutual Fund Style Drift
Asset allocation is a cornerstone of successful investing. As the name indicates, it involves investing one’s capital among different asset classes and investment styles. If you allocate incorrrectly,...
View ArticleWatch for Portfolio Overexposure
Previously I have written about potential problems in diversifying one’s portfolio with funds. The Wall Street Journal nicely illustrates three common concerns in an article today. Are You a Secret...
View ArticleAcceptable and Unacceptable Assets
Once you have completed your investor profile, the next step is to determine acceptable investment options. What asset classes and sub-classes to include in or exclude from your investment universe....
View ArticleRisk-Return in Asset Subclasses
Asset classes have general risk-return characteristics. Cash is low risk, low return. Fixed income is riskier and has higher returns than cash. Common shares have the highest risk and expected return...
View ArticleCompare Performance to Peers
If you create a portfolio of individual stocks and bonds, it may be unique to you. Creating a benchmark may take a little work. If your invest in index funds, you will be able to easily find a relevant...
View ArticleSigns of Portfolio Over-Diversification
A well diversified investment portfolio is a key requirement for long-term investing success. Diversification is important. But sometimes too much diversification can negatively impact portfolio...
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