StockFetcher Forums · General Discussion · Invest in these mutual funds or go with alternate strategy?<< >>Post Follow-up
guru_trader
485 posts
msg #45331
Ignore guru_trader
modified
6/27/2006 5:35:34 PM

Slightly off the topic of stocks, but I'd like to ask about mutual funds and best places for cash.

I've got some cash sitting in a money market account with my local investment banker (Banc of America Investments). He has suggested that I evenly divide this cash into the following "automatic asset allocated" mutual funds with about $10-$15,000 into each:

1) Goldman Sachs Equity Growth Strategy Portfolio (GAPBX)
2) MFS Aggressive Growth Allocation Fund (MBAGX)
3) AIM Growth Allocation Fund (AAEBX)
4) Fidelity Advisor Diversified International Fund (FDIBX)
5) Jennison Small Company Fund (CHNDX)

Note: All Class B shares suggested by my broker to reduce penalties of early withdrawal.

Oh, I asked the investment banker how he makes his money and he claims to make some money from the interest on the cash sitting in the money market account (currently at 4.3%) and a couple % from the annual growth of the fund. If the fund makes 12%, he will get 1.5% and I will get the remaining 10.5% ... or, something like that.

I may not need access to this cash until about 3 years from now. I like the idea behind asset allocation strategies, but is this the right way to go? Can any of you recommend alternative strategies to put this cash to work? Are there better money market accounts than those at Banc of America?




oldfox
16 posts
msg #45339
Ignore oldfox
6/27/2006 11:00:18 PM

He is a broker because he makes customers "broker" than they would be without him. If you want buy-and-hold, why not use Vanguard funds directly with no commissions and low management fees?

If your broker wants a percentage of your action, make him accept a percentage of your account increase and rebate you a percentage of your account decrease under his management like hedge fund managers do. His answer reveals his confidence in his own recommendations.

Didn't Elliot Spitzer teach us that brokers have a conflict of interest with regard to their customers?



markcrisp
187 posts
msg #45362
Ignore markcrisp
6/29/2006 5:36:09 AM

I can't for the life of me understand why anyone would invest in Mutual Funds.

If you want to ge really hands off simply trade off monthly data.

5 mins a month. No fees. Better performance.


wlgilbert40
1 posts
msg #45363
Ignore wlgilbert40
6/29/2006 7:40:27 AM

guru, I opened a www.treasurydirect.com account for short term money(28 day minimum). Its an auction every Tuesday and the rate is currently at about 5%. Good place to park short term cash.


guru_trader
485 posts
msg #45378
Ignore guru_trader
6/29/2006 7:38:53 PM

Mark Crisp:

I can't for the life of me understand why anyone would invest in Mutual Funds.

If you want to ge really hands off simply trade off monthly data.

5 mins a month. No fees. Better performance

=============================

Ya, you're right


StockFetcher Forums · General Discussion · Invest in these mutual funds or go with alternate strategy?<< >>Post Follow-up

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