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Maximize your Mutual Fund Returns: Morningstar Mutual Fund Investing Workbook, Level 3
For those ready to move on to a higher level of mutual fund investing, The Morningstar Investment Coach: Maximizing Returns and Staying on Track is the ideal resource. Filled with in-depth insight and expert advice-including how to bear-proof your portfolio, calculate your personal rate of return, and rebalance your portfolio-this guide will add advanced techniques to the sophisticated investor's mutual fund investing toolbox.
- GenresFinance
296 pages, Paperback
First published January 4, 2005
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Displaying 1 of 1 review
December 10, 2009
I thought the first 2 books in this series, Find the Right Mutual Fund: Morningstar Mutual Fund Investing Workbook Level 1 and Diversify Your Mutual Fund Portfolio : Morningstar Mutual Fund Investing Workbook Level 2 were decent, so it made sense to finish the trilogy with this one.
The book discusses how to increase your long-term returns by adding some spice to your boring core funds. Options include focused funds, sector funds, out-of-favor funds, and rookie funds. The book also covers when to sell a fund and guidelines on rebalancing.
Notes
Use style-specific funds for the core of your portfolio; use them to meet your asset allocation goals. Use a portion of your assets for flexible funds (funds that vary in the style of their holdings).
A broad fund like the Vanguard Total Stock Market Index covers all major US sectors, so if you own that, you don't need additional sector funds.
Use only 5% of your portfolio for speculative investing.
The Morningstar mantra
- Buy low, sell high
- Don't panic
- Don't expect the future to repeat the past
Avoid portfolio overlap:
- Same styles
- Same sectors
- Same holdings (companies)
- Large-cap funds
Add small-growth and small-value to diversify
Rebalancing
- Every 18 months:
-- 1st, check stock/bond mix
-- 2nd, rebalance when styles have changed by 25%
- Rebalance by directing new money, rather than selling current assets, to avoid taxes
The book discusses how to increase your long-term returns by adding some spice to your boring core funds. Options include focused funds, sector funds, out-of-favor funds, and rookie funds. The book also covers when to sell a fund and guidelines on rebalancing.
Notes
Use style-specific funds for the core of your portfolio; use them to meet your asset allocation goals. Use a portion of your assets for flexible funds (funds that vary in the style of their holdings).
A broad fund like the Vanguard Total Stock Market Index covers all major US sectors, so if you own that, you don't need additional sector funds.
Use only 5% of your portfolio for speculative investing.
The Morningstar mantra
- Buy low, sell high
- Don't panic
- Don't expect the future to repeat the past
Avoid portfolio overlap:
- Same styles
- Same sectors
- Same holdings (companies)
- Large-cap funds
Add small-growth and small-value to diversify
Rebalancing
- Every 18 months:
-- 1st, check stock/bond mix
-- 2nd, rebalance when styles have changed by 25%
- Rebalance by directing new money, rather than selling current assets, to avoid taxes
Displaying 1 of 1 review