Investment Strategy
Mutual funds are professionally managed investment funds that pool money from many investors to purchase securities such as stocks and bonds.
In the United States, mutual funds play an important role in U.S. household finances. By 2019, mutual funds accounted for roughly half of the assets in individual retirement accounts, 401(k)s and other similar retirement plans.
• A Mutual Fund diversifies by holding many securities thus decreasing risk.
• Daily liquidity
• Professional investment managers supervise the fund’s investments.
• Can acquire investments that may be available only to larger investors.
• Mutual funds are regulated by a governmental body. All mutual funds are required to report the same information to investors, making them easier to compare.
The mutual funds we work with have no front-end or back-end sales commission and are selected based on the following L.O.R.D.S. Strategy:
Longevity – Funds have to be in existence at least 25 years.
Opportunity – Fund’s recent returns are underperforming its lifetime return. Usually making it a better opportunity than a fund whose recent returns are outperforming its lifetime return.
Returns – Funds historically have annual returns ranging from 12% to over 16%.
Diversity – Funds recommended are specific sectors and unique funds among different industries. Average Fund owns 61 different stocks.
Stability – From 1985 to 2021, if invested strategically in our funds, there were 34 years of positive returns with only 3 negative return years. The 3 negative years averaged -22.38%. Taking the average of the S&P 500 & Nasdaq Indexes during the same period, there were 31 years of positive returns with 6 negative return years averaging -16.28%.
Past performance does not guarantee future results. All returns are net of fees & include reinvestment of capital gains & dividends. Sources: morningstar.com, finance.yahoo.com & fidelity.com. Please refer to our Disclosure page for more information about funds and indexes.
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