Mutual Funds

With over 10,000 mutual funds available for individual investors to choose from, investing in mutual funds can be both complicated and overwhelming.  We use a three step process in constructing and maintaining our client’s mutual fund portfolios.  Our goal is to reduce risk and increase returns over time.

 

Based upon the client’s goals, objectives, risk tolerance and time frame we will propose what we feel is an appropriate asset allocation.  The assets would typically be diversified between various sub sectors of the equity markets such as large cap, small cap, growth, value, domestic and international.

 

Choosing the actual mutual funds.  Once the asset allocation has been constructed we will seek out the best mutual funds to manage each portion of the portfolio.  When it comes to choosing the actual funds the most important criteria is investing in the mutual funds with the best past performance in that particular sector of the market in both good and bad markets.  Once you find those funds you want to confirm that the mutual fund manager running that fund is the same manager that produced the above average returns.

 

Monitor Portfolio.  From there we will monitor the funds’ performance, any changes in management of the fund or shifts in our asset allocation model.  On a regular basis we will review our asset allocation and rebalance the portfolio.  The goal of rebalancing is to lighten up on assets that may have gotten ahead of themselves and add to areas of the portfolio that may have become undervalued.