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