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How To Add Alternative-Investment Funds To A Portfolio
I, basically, used option number two except I studied the funds I wanted to add through Morningstar’s Instant Xray Analysis tool to make my fund selections and to also know when I had reached the desired alternative allocation by analysis of the portfolio as a whole. Some of the funds I selected were not alternative funds themselves but held a good allocation of alternative assets or employeed special strategies. For me alternative assets are those assets other than traditional assets such as stocks, bonds and cash and would also include special strategies.
Currently, my portfolio’s asset allocation Xrays at about 20% cash, 20% bonds, 50% equity and 10% other assets (alternatives). Within stocks I am about 60% domestic and 40% foreign; and, among styles split about 70% to large caps and about 30% to mid & smalls caps.
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Currently, my portfolio’s asset allocation Xrays at about 20% cash, 20% bonds, 50% equity and 10% other assets (alternatives). Within stocks I am about 60% domestic and 40% foreign; and, among styles split about 70% to large caps and about 30% to mid & smalls caps.