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I have a full position in PIMIX and am debatting whether or not to invest more money in PIMIX or start a new position in JGIAX for diversification. I'm near retirement so I want to build my income stream. It seems like PIMIX is the less risky fund, but who can be sure? Most of my bonds are in plain vanilla type funds. Any advantages in diversifying into JGAIX?
See numbers from PortVis(link) of PIMIX,JGIAX,JMUTX,PUCZX 1) PIMIX + JMUTX have similar volatility=SD but JMUTX performance is better and why JMUTX Sharpe+Sortino is better. 2) JGIAX + JMUTX have similar performance but JMUTX volatility is better and why JMUTX Sharpe+Sortino is better. 3) PUCZX has the best performance but volatility is a bit higher(worse) and why PUCZX Sharpe+Sortino are the best.
"Soupkitchen">I have a full position in PIMIX and am debatting whether or not to invest more money in PIMIX or start a new position in JGIAX for diversification. I'm near retirement so I want to build my income stream. It seems like PIMIX is the less risky fund, but who can be sure? Most of my bonds are in plain vanilla type funds. Any advantages in diversifying into JGAIX?
Soup, I am not inclined to act like a financial advisor, and I believe the answer to your question has a lot to do with your personal portfolio objectives, how important "diversification" is to you, and what kind of risk factors enter into your decision. From a personal standpoint, I look for funds that fit my very low risk, conservative style of investing. There were several threads at M* that discussed JGIAX, JMUTX, and PUCZX, as possibilities in portfolios, often in comparison to PIMIX. My personal conclusion is that from a risk analysis, the least risky of these 4 funds is PIMIX, followed by JMUTX, JGIAX, with the most risky fund being PUCZX. At the end of calendar year 2019, I personally decided to keep PIMIX, and not add the other 3 funds to my portfolio, especially dismissing JGIAX and PUCZX as having more risk than I personally preferred. I came close to adding JMUTX as a fund to complement PIMIX, but ultimately decided to go with a lower risk non-traditional bond oef IISIX, which is very nicely diversified but fit my risk and return profile better than JMUTX. I will note that PUCZX and JGIAX produce more yield, which you may prefer, at a higher risk level than PIMIX, so it boils down to your own personal risk/return criteria for your personal portfolio.
Comments
1) PIMIX + JMUTX have similar volatility=SD but JMUTX performance is better and why JMUTX Sharpe+Sortino is better.
2) JGIAX + JMUTX have similar performance but JMUTX volatility is better and why JMUTX Sharpe+Sortino is better.
3) PUCZX has the best performance but volatility is a bit higher(worse) and why PUCZX Sharpe+Sortino are the best.
Soup, I am not inclined to act like a financial advisor, and I believe the answer to your question has a lot to do with your personal portfolio objectives, how important "diversification" is to you, and what kind of risk factors enter into your decision. From a personal standpoint, I look for funds that fit my very low risk, conservative style of investing. There were several threads at M* that discussed JGIAX, JMUTX, and PUCZX, as possibilities in portfolios, often in comparison to PIMIX. My personal conclusion is that from a risk analysis, the least risky of these 4 funds is PIMIX, followed by JMUTX, JGIAX, with the most risky fund being PUCZX. At the end of calendar year 2019, I personally decided to keep PIMIX, and not add the other 3 funds to my portfolio, especially dismissing JGIAX and PUCZX as having more risk than I personally preferred. I came close to adding JMUTX as a fund to complement PIMIX, but ultimately decided to go with a lower risk non-traditional bond oef IISIX, which is very nicely diversified but fit my risk and return profile better than JMUTX. I will note that PUCZX and JGIAX produce more yield, which you may prefer, at a higher risk level than PIMIX, so it boils down to your own personal risk/return criteria for your personal portfolio.