Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
This is going to be a one off post to highlight a less discussed aspect of fund selection in Buy decisions.
E.g., at the moment I do not own AGEYX. A fund is a bag of risks (and hopefully, there will be commensurate returns down the road). Whether an investor sources their risk from that fund or some other fund depends on what risks the investor is shopping for. While my portfolio can source some risk from AGEYX, it is not in the portfolio solely because of fund inflows. Looking at MFOP, 90% of its inflows seem to have come this year alone, with 60% in the last 4 months. I do not have the sell discipline required to invest in a fund with such inflows. I have to keep my overall portfolio risk aligned with my personal / behavioral limitations. If I were looking for a buy and hold fund with that bag of risks, I am likely to buy / own AGEYX.
Comments
E.g., at the moment I do not own AGEYX. A fund is a bag of risks (and hopefully, there will be commensurate returns down the road). Whether an investor sources their risk from that fund or some other fund depends on what risks the investor is shopping for. While my portfolio can source some risk from AGEYX, it is not in the portfolio solely because of fund inflows. Looking at MFOP, 90% of its inflows seem to have come this year alone, with 60% in the last 4 months. I do not have the sell discipline required to invest in a fund with such inflows. I have to keep my overall portfolio risk aligned with my personal / behavioral limitations. If I were looking for a buy and hold fund with that bag of risks, I am likely to buy / own AGEYX.