Commentaries

Using a Flexible Fund in Larger a Portfolio

Kevin Downing — Thu, 13 Dec 2012 20:09:40 GMT

Flexible funds give the portfolio managers the ability to shift assets based on market conditions. This type of flexibility makes these funds appropriate as a sole holding, but can also be a benefit in a more broadly diversified portfolio.

Mutual Funds: The Benefits of a Family Approach

Richard Gallagher — Thu, 29 Nov 2012 16:53:55 GMT

Mutual fund investors face the choice of cherry picking funds or sticking with one fund family. There are benefits to going this route and negatives; there’s also a workaround.

Bond Funds are Hot, But Fear May Be Clouding Investor Judgment

Richard Gallagher — Mon, 08 Oct 2012 14:08:07 GMT

Bond funds have been drawing more investment than stock funds. Since this is most likely driven by fear and performance chasing, it is worth taking a moment to consider why one would want to own bonds in the first place.

Dividend Investing, Go it Alone or Use a Fund?

Nira Nardeo — Tue, 04 Sep 2012 12:57:49 GMT

Investing for dividend income has become a popular niche. With new investment products attempting to fill the demand, it begs the question of whether to do-it-yourself or outsource to a professional

June 30, 2012 Quarterly Mutual Fund Review

Kevin Downing — Wed, 08 Aug 2012 14:17:38 GMT

This review lists 15 of the largest funds in our 19,000+ Mutual Fund database. These funds’ total assets account for about 11% of the assets of all the funds we follow. Consequently, many investors are affected by how these funds perform.

Fund Managers Should Eat Their Own Cooking

Kevin Downing — Fri, 13 Jul 2012 17:56:43 GMT

Mutual fund investors entrust their savings to the managers of their fund holdings. It’s nice to see a manager who owns a lot of the funds he or she manages.

Investing in China

Richard Gallagher — Tue, 26 Jul 2011 19:06:03 GMT

There is no denying that China is “hot.” While buying individual stocks is one way to gain exposure to this rapidly developing nation, mutual funds may provide a more diversified avenue. From owning individual stocks like the ones covered in The Value Line Investment Survey to using an Asian specialist like Matthews Funds, there are a plethora of options to gain exposure to China.

Funds for Rising Rates: Floating Rate Funds

Gregg Brewer — Wed, 15 Jun 2011 18:46:23 GMT

Interest rates are at historical lows. Although one can persuasively argue that rates can still go lower in the near-term, it is unlikely that they will remain this low forever. The current environment is a dilemma for income-oriented investors. Though not a solution, floating rate funds can help provide some consistency.

Do You Know What You’re Invested In?

Marigo Rizzo — Mon, 02 Apr 2012 19:35:56 GMT

Mutual fund investors may have more in common than they think. While the objectives of various funds are often very different, the general goal of most mutual fund managers is the same—capital appreciation. In fact, many of the largest U.S. mutual funds hold considerable positions in the same stocks, which means that mutual fund investors could have a stake in some well-known companies without even realizing it.

Year-End Distributions and Ticker Shock

Richard Gallagher — Wed, 24 Nov 2010 20:50:14 GMT

As pass-through entities, mutual funds must distribute dividends and capital gains to shareholders. These distributions often occur at the end of the calendar year and can, at times, be quite large. Fund shareholders need to be cognizant of these distributions lest they find themselves in a surprising situation.

Closed-End Funds: A Viable Option For All Investors

Matthew Spencer — Tue, 09 Nov 2010 18:37:53 GMT

Despite their long history and wide availability, many investors are unfamiliar with closed-end funds. They differ from their more popular counterpart, mutual funds, but they are a solid option for all types of investors, ranging from the passive variety that tend to lean toward buy and hold investing to those who like to trade more often, and from those looking to diversify their holdings into bonds and other asset classes to investors wishing to increase exposure to a certain geographic region or a particular industry.

Quarterly Fund Review: Third Quarter 2010

Matthew Spencer — Wed, 27 Oct 2010 14:39:06 GMT

With the debt crisis in Europe now seemingly under some control and the Federal Reserve still keeping interest rates low, stocks and bonds appreciated nicely during the three-month period ended September 30, 2010. Indeed, most of the losses sustained in the second quarter were recouped.

Value Line’s Take on Fund Manager Selections: Thornburg Value Fund October 11, 2010

Greg Brewer — Mon, 11 Oct 2010 10:00:04 GMT

We recently wrote an overview of Thornburg Value Fund (TVAFX) that provided a broad look at how co-managers Edward Maran and Connor Browne invest. It’s hard not to “talk shop” when discussing broad investment themes, however, and the discussions that led to that article brought up some intriguing investment ideas. Two that seemed particularly interesting were Transocean (RIG) and Ensco (ESV).

Knowing What You Own

Richard Gallagher — Wed, 01 Dec 2010 15:56:38 GMT

It is very easy to get caught up in the moment. When reading that statement, it’s likely that the notion of a romantic encounter came to you mind. But romance isn’t the only situation in which people get carried away. That’s why it’s important for investors to do their research before purchasing an investment, even a mutual fund, to ensure that the relationships they create aren’t made in the heat of the moment.

Options Strategies The Pros Use

Marigo Rizzo — Mon, 18 Mar 2013 17:06:47 GMT

Options have their place in an investor’s overall toolkit. When used judiciously, options can help increase the income generated by a portfolio and provide downside protection to wary investors. Two funds to examine that use options are Van Kampen Equity Premium Income Fund (VEPAX) and Gateway Fund (GATEX). Although the news in recent years has highlighted the risks of certain investment strategies, such as options, the headlines shouldn’t dissuade investors from learning more.

For Some Funds it’s All About the Manager

Marigo Rizzo — Mon, 18 Mar 2013 17:07:46 GMT

When investors look at purchasing a fund, they often review a fund’s objective and its historical performance. While both are logical to examine, it is also important to know exactly who it is that is managing the fund, since this person is, ultimately, the one to whom an investor is entrusting his or her money.

Funds with a Focus on Distributions

Marigo Rizzo — Mon, 18 Mar 2013 17:09:03 GMT

Mutual funds rose in popularity during a time when the accumulation of wealth was the main focus of most investors. Now, however, as more investors end their work careers, there looms a demand for a product that replaces a salary. This is the exact opposite of what most mutual funds are set up to do and the vast majority of fund companies do not appear to be preparing for the change that is slowly happening. A few, however, have ventured into the waters of distribution-focused mutual funds.

IRA Investors Have a Window of Opportunity to Convert to a Roth

Greg Brewer — Tue, 02 Feb 2010 16:36:04 GMT

The federal government, as part of the Tax Increase Prevention and Reconciliation Act of 2005, permanently eliminated the $100,000 limit for Roth conversions, starting January 1, 2010. This change, combined with the recent decline in stock prices, has given many subscribers a chance to convert to a Roth account, and with less tax owed on conversion than if stocks were at higher levels.

Target-Date Mutual Funds — Proceed With Caution

Greg Brewer — Tue, 02 Feb 2010 16:46:00 GMT

Target-date mutual funds have been the subject of much scrutiny over the past weeks and months. These funds are generally meant to be the sole holding for an investor, providing a diversified mix of assets that change over time, becoming more conservative as the “target date” draws near. In general, the “target date” is expected to be the investor’s retirement date. The general logic of these offerings is to do for investors what they may not be able to do for themselves—provide diversification/asset allocation and a structured investment program that changes (becomes more conservative) as the investor ages.