| For many individual investors, finding the time to | | | | process is completed just once per year (it rarely |
| manage a portfolio of properly diversified | | | | is done so infrequently when fund companies |
| securities is arguably one of the most difficult | | | | have an interest in a company), these activities |
| tasks when it comes to investing. After all, finding | | | | could never be properly completed by a busy, |
| the money every pay period might be tough at | | | | individual investor. |
| first but as humans we adapt (and rather quickly | | | | Attention. As with the above, mutual fund |
| at that). And finding the securities is not all that | | | | companies spend their days analyzing the |
| difficult either because so many television channels | | | | companies in which they have an interest. |
| and websites offer glowing or scathing reviews | | | | Likewise, they monitor the performance of the |
| about different companies and bonds that the | | | | securities they hold and make strategic decisions |
| worst part comes down to a lack of resources to | | | | based on specific market factors that affect |
| adequately capitalize on all of those opportunities. | | | | those prices. |
| Without having the right amount of time to | | | | Expertise. Mutual fund companies hire only the |
| manage a portfolio, however, any investor is | | | | most qualified individuals. Even their everyday |
| destined to failure. This makes sense because | | | | analysts will be over-qualified by many standards, |
| securities change. The underlying companies | | | | meaning that the individual or group that is in |
| change, their strategy changes, their sales staff | | | | charge of making final investment decisions (or |
| changes, their product line changes and so on and | | | | pulling the trigger as it is known) will have enough |
| so forth. Investors who are unable to adjust their | | | | letters and educational experience behind their |
| investment portfolios to accommodate such | | | | name that a set of Scrabble would blush. |
| changes will realize too late that they have missed | | | | Efficiency. Given the volume of business that |
| opportunities and suffered real or opportunity | | | | mutual fund companies complete, they are |
| losses as a consequence. | | | | extremely efficient at obtaining the absolute best |
| For these reasons, investors who prefer that | | | | market prices for assets they buy and sell. This |
| their assets are actively managed would be | | | | alone gives them a tremendous advantage over |
| better of working with a strategic balanced fund. | | | | the everyday investor. With strategic balanced |
| This is because these types of balanced funds | | | | funds turning their portfolio even more frequently |
| offer what nearly every individual investor lacks - | | | | than cookie cutter equity and income funds, |
| time, attention, expertise and extreme efficiency. | | | | efficiency has a heightened importance. |
| Time. Mutual fund companies spend their days | | | | By investing in strategically managed balanced |
| analyzing and reviewing financial statements for | | | | funds, investors are able to capitalize on the |
| the companies they either own or intend on | | | | intellectual and capital that nearly every fund |
| owning. In many cases, some analysts are | | | | company has at its disposal. More importantly, |
| crunching the numbers while others are discussing | | | | investing in the right balanced fund allows the |
| growth plans with management and others are | | | | investor the freedom to focus on the areas of |
| meeting with executives to get a feeling for | | | | life that matter most, not the same investments |
| where the company is headed. Even if this | | | | they have been neglecting. |