Sensible Investment Strategies is a free site
specializing in asset allocation strategies with suitable recommendations from high-ranked
100% no-load mutual funds. In addition, you can easily find articles on various
mutual fund topics, links to important independent sites and excellent
glossaries -- all located in the left border.
One of the cornerstones for a successful portfolio is an appropriate strategy....one that gives
your plan a clear and precise blueprint to achieve your goals. A
mutual fund asset allocation strategy provides
i.e., the dispersion of assets over diverse and distinct fund categories to
achieve: (1) specificrisk/reward objectives and(2) a reduction of
overall portfolio risk.
Successful asset allocation plans
also eliminate the following
haphazard fund selection:
inappropriate strategies, over-weighted
fund categories, duplication
of catagories and unsuitable funds.
For further insight, go to "Three
Common Mistakes in Mutual Fund Investing".
Whether you are in a particular stage of asset
accumulation or desire capital preservation with income - or just need a second opinion
Strategies can propose an effective plan that is tailored to precisely fit your investment objectives and specific risk tolerance.
A Three Step
The first essential step in establishing
a good plan is to define investment objectives -- including
size, investment stage, time horizon, return objectives and risk tolerance. Go
to Objectives & Risk
for detailed information.
The second step is
devising an appropriate strategy -
including detailed allocation by fund
category - that best represents your objectives and risk tolerance.
Investment Strategies emphasizes specific risk/reward mutual fund allocation
strategies to achieve effective diversification -- for details, go to
"The Role of Risk in
Mutual Fund Strategies".
third and final step, suitable high-ranked 100%no-load mutual funds are
recommended to match the category allocations. Attributes of recommended funds include:
above-average category performance
adherence to fund objectives and style
below-average operating expenses for the category
for Recommended Funds
No front-end loads (initial sales commissions) No back-end loads (deferred sales
charges) No 12b-1 fees (annual marketing fees)
Below-average annual operating
Minimum five-year performance history
Above average category rankings -- Morningstar 4 or 5 stars
Think of your investment stage in
terms of a life cycle. During your working or accumulation
years, growth-oriented strategies will likely attain higher total
returns than balanced-oriented or income-oriented strategies. As you approach
retirement, possibly a balanced-oriented strategy may be more
appropriate to conserve your accumulated assets. Finally, in retirement,
income and stability would most likely be your priorities, although some growth
is also important to help protect against inflation. However, these are general
guidelines -- your portfolio size, time horizon, return objectives and risk
tolerance should determine the
strategy that best represent the goals that you want to achieve.
All of the following strategies depict conservative, moderate and aggressive risk tolerances. The
in all three risk
tolerances are (1) modification in allocations and (2) variation in fund categories.
Choose your strategy from the following --
age ranges are guidelines only:
Starting (ages 25-40) -- for very long-term, growth-oriented objectives
Explore other sections for information on related topics.
a question that is not covered in
& Answers or elsewhere in this site?
Do you need customized portfolio advice? An evaluation for your current mutual fund
or telephone Jack Piazza at 630-606-6118.