Are there any Asset Allocation or Fund of Funds worth investing in?
2006-06-28 06:10:20 · 6 answers · asked by Baldie_1969 1 in Business & Finance ➔ Investing
Yes asset allocation funds are worth investing in if their performance is significantly better than the markets in general. But remember you are layering fees. The fund will charge you a fee or expense ratio plus they are paying fees to the funds in which they invest. This has a neg. impact on overall returns and potential adverse tax consquences. Buying the Sector ETF (exchange trade funds) and weighting them based on performance. Can be a much more cost effective and flexible alternative. By adding to the top performing sectors while reducing exposure to underperming ones. The odds of outperforming the market are greatly enhanced. The fees associated with this type of dynamic strategy are much lower than most Funds or Fund of funds. It is a strategy that works well in a non-commission Advisery relationship. If you would like to find out more about this approach see my homepage below.
D Sivel Sivel Capital Management
2006-06-28 07:15:07 · answer #1 · answered by David S 1 · 0⤊ 0⤋
I would say yes. It is really difficult to explain it through Yahoo! Answers.
Asset Allocation funds is broad category and fund houses may have unique models. Some of the models are graduating model where at the start high equity low debt ratio is chosen and as the time goes by shift from equity to debt and at the end of target period the funds are mostly held in debt. "FT India Life Stage Fund of Funds" is similar to the model mentioned above, but doesn't change the asset allocation automatically and the investor has to change it at the appropriate time. A second model can be based on current market PE ratio like the one adopted by "FT India Dynamic PE Ratio FoF". There could be other models which I may not be aware of.
Fund of Funds minimises holding several funds and some of the FoFs help to diversify across mutual fund houses.
Good luck.
2006-06-28 22:57:33 · answer #2 · answered by glib 3 · 0⤊ 0⤋
I invest in a Fund of Funds with American Century Investments and have found it to be very profitable. I've gotten a better return on it than I have any of my other funds this year. I invest in the My Retirement class of funds with them.
2006-06-28 14:16:04 · answer #3 · answered by jlamb_2000 2 · 0⤊ 0⤋
It is an simple way to keep your investment portfolio balanced. This will help reduce your risk and keep your investment plan on track. I like them for investments under $250,000
2006-06-29 11:22:35 · answer #4 · answered by Larry W 1 · 0⤊ 0⤋
very easy, visit www.stocksidea.com , they are consultants in india in stocks, mutual funds and all finance related info.
2006-07-01 16:06:39 · answer #5 · answered by Abhi 2 · 0⤊ 0⤋
Vanguard has some.
2006-06-28 14:14:57 · answer #6 · answered by jeff410 7 · 0⤊ 0⤋