| No load mutual fund investors normally either | | | | |
| invest in the best mutual funds from one fund | | | | Single-family and multi-family investing are |
| family or invest in the top mutual funds from | | | | both viable investment strategies. However, |
| several fund families. | | | | spreading the risk among several companies |
| | | | can reduce what I would call mutual fund |
| Building a mutual fund portfolio requires a | | | | company risk. Fidelity and Vanguard are very |
| well thought out investment strategy that can | | | | highly regarded and successful mutual fund |
| prove rewarding over a long period of time. | | | | companies today, but no one knows what the |
| If you act as your own investment advisor, | | | | future will bring. No company is infallible, |
| you will most likely implement a strategy | | | | as we have seen in recent years with the |
| that focuses on no load mutual funds. No load | | | | demise of top companies once considered to be |
| mutual fund investors normally either invest | | | | leaders in their fields. Further, there is no |
| in the best mutual funds from one fund | | | | reason why a person cannot invest in no load |
| family, sometimes with the help of a mutual | | | | mutual funds from several companies. Sure, |
| fund newsletter, or invest in the top mutual | | | | you are likely to get a plethora of |
| funds from several fund families. The | | | | statements in the mail, but you could opt for |
| rationale for implementing either of these | | | | electronic delivery. Unfortunately, far too |
| strategies depends at least partly on your | | | | many people consider the volume of mailings |
| view on how to best add value to a | | | | to be a factor when choosing an investment |
| portfolio.Selecting the Best Mutual Funds | | | | program.The Expense Factor |
| From One Fund Family | | | | |
| | | | Whether you decide to invest in the no load |
| Investors who believe that asset allocation | | | | mutual funds from one family or several, |
| is more important than manager selection are | | | | please make sure that you are selecting funds |
| the likely implementers of a single-family | | | | with relatively low expense ratios. The |
| approach. As long as you can find a fund | | | | evidence is clear and convincing that mutual |
| company that offers high quality no load | | | | funds with low expense ratios outperform |
| mutual funds that cover a wide variety of | | | | funds with high expense ratios. This is |
| sectors and styles, you should be able to | | | | especially true for funds that invest in the |
| implement this approach. This strategy is top | | | | large-cap sector, where it can be difficult |
| down and active in terms of asset allocation | | | | for a manager to outperform the S&P 500 |
| but passive regarding manager selection. | | | | Index, a widely used benchmark for large-cap |
| While fund managers are important here, they | | | | mutual funds. In the large cap-world, |
| do not drive the investment process. Several | | | | information is widely known and some managers |
| mutual fund newsletters offer model | | | | find it challenging to add value through |
| portfolios comprised of mutual funds from one | | | | fundamental research. Parting Advice |
| fund family. Selecting the Top Mutual Funds | | | | |
| From Several Fund Families | | | | The decision to invest with one family or |
| | | | several can be very personal. Some people |
| The multi-family strategy normally | | | | fall in love with their fund companies just |
| incorporates a top down as well as a bottom | | | | like a portfolio manager falls in love with a |
| up approach to investing no load mutual | | | | sector and refuses to expand into other parts |
| funds. For the purpose of this article, top | | | | of the market. Emotions tend to cloud your |
| down refers to asset allocation while bottom | | | | judgment, leading to less than optimal |
| up deals with manager selection. Investors | | | | investment decisions. Although as humans we |
| using this approach create a desired | | | | are innately emotional, when navigating the |
| allocation and then select the best funds | | | | investment world, you are better off making |
| available to implement the strategy. Which | | | | rational investment decisions. |
| is the Better Approach? | | | | |