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What percent of your total portfolios is your largest mutual fund or stock position?
In our total portfolios of IRA's (6) and taxable (1) accounts our largest mutual fund holding is 5.4% and stock holding is 3.8%. What do you think is a reasonable amount? We also have a cash position of 14%.
Total across IRAs and 401ks and taxable, and given i have a lot of cash on percentage basis which I consider a position in the portfolio, AND in no small measure because I'm still experiencing withdrawal symptoms of Excessive Funditis, my largest position is a whopping 2.5% in HSGFX.
Please don't kill Me !!!
Now I like ducrow (I think it is him) thinking. 20 funds. 5%. So I think you are fine.
depends on volatility i would think. less volatile positions could be much larger, while individual equities or micro-caps should be limited to under 3%, in my opinion. but the sizing also depends on one's age and/or investment horizon and risk tolerance. my largest allocations of over 8% each is to a low volatility PTLDX and a stable value fund in one of the 401Ks, for example.
My opinion is 5-10% is a good place to be if you have conviction for the fund's management and if you consider it a core holding in your portfolio. At this time, I have 10% in both YAFFX and FPACX. I'm considering adding another 5% to FPACX. I have plenty of others at 5% or more, MACSX, ARIVX, FAAFX, PAUIX, RGHVX, MWTRX, FGBRX.
I'll add another opinion, and I'm sure this will be unpopular with many here, having less than 2% is kind of a waste of time for that fund to affect the total return in your portfolio. But I guess that would just take us into the the old 'what is the number of funds' needed in a portfolio.
Reply to @MikeM: I'll second your opinion that a holding of less than 2% is a waste unless you have maybe a 7-figure portfolio and you're just spreading it out. Still at 2% or less it seems that one would be lacking in conviction and purpose.
At this point I am at 15% PTTDX and 13% OARIX as 2 biggest holdings. Some would say that that the more funds one has the more index like his returns will be. If so less would be more.
I now have 18 funds.
Been thinking about reducing funds. For instance why do I need PCVAX and CHTTX as long term holdings? If I am to go this route I would have <10 funds with at least 10% in each.
This is like Deja Vu. I used to own both PCVAX and CHTTX and sold them from IRA precisely for reducing funds. Didn't find anything distinct about them.
Reply to @Mark: Agree for mutual funds but not for individual stocks. Don't think it should be more than 4-5% for a solid company, less for speculative.
Reply to @Investor: Given your enthusiasm for Fidelity Low Priced (FLPSX), I might have expected it to rank higher in your portfolio.
In any case, my top percentages (funds omitted) roughly track yours - 11.7%, 9.5%, 7.1%, 6.2%, 5.5%.
I tend to agree with Mike, that 5-10% is good (and perhaps a minimum) for core funds, and anything under 2% is pretty useless. All my holdings under 2% are placeholders (e.g. keeping a toe hold in grandfathered funds), except for one fund that I'm dabbling in and expect to build up over time.
I have fewer than 10 funds, each weighted between 10-15%. My experience is that I didn't get much of a feeling for a fund when it represented less than 10% of my portfolio. If a fund is interesting but I'm not willing to commit 10% of my portfolio to it, it's probably not worth my while.
My largest holding is in Franklin Income Fund (FKINX) and the senior fund within its sleeve. It is a fund that traces it roots in my portfolio back into the mid 60's. It makes up about 8% of the total portfolio which is the cap for anything that I hold (no more than 8% of anything, the exception being cash). Since, I use the sleeve system in my portfolio I do not like to establised positions if they are not targeted to be at least 10% in the sleeve that holds them. With this I have a total of four areas of investment which is divided into twelve sleeves. Two areas (cash & income) hold two sleeves each while the other two areas (growth & income and growth) hold four sleeves each. I currently, hold forty nine funds.
I have about 15% in RPHYX for my biggest holding. Also about 11% in FPNIX, 8% in AVEFX, 8% in DHSTX.
Have about 6% in each of several stock funds (VDIGX, NSEIX,FAMVX,TWEBX,TBGVX,FMIJX,FPIVX, FPACX) plus about half that in several small cap funds (NNLEX, FAMFX,GPIOX). And a bit in T. Rowe Price's new global allocation fund (RPGAX).
Comments
Please don't kill Me !!!
Now I like ducrow (I think it is him) thinking. 20 funds. 5%. So I think you are fine.
PREMX = 37.43% of total.
MAPIX = 36.86% of total.
I'll add another opinion, and I'm sure this will be unpopular with many here, having less than 2% is kind of a waste of time for that fund to affect the total return in your portfolio. But I guess that would just take us into the the old 'what is the number of funds' needed in a portfolio.
I have 10% in TIBIX and FAIRX.
I now have 18 funds.
Been thinking about reducing funds. For instance why do I need PCVAX and CHTTX as long term holdings? If I am to go this route I would have <10 funds with at least 10% in each.
Art
BUFBX: 11.25%
RPHYX 9.63%
AKREX 8.83%
YAFFX 8.63%
ARTKX 5.91%
In any case, my top percentages (funds omitted) roughly track yours - 11.7%, 9.5%, 7.1%, 6.2%, 5.5%.
I tend to agree with Mike, that 5-10% is good (and perhaps a minimum) for core funds, and anything under 2% is pretty useless. All my holdings under 2% are placeholders (e.g. keeping a toe hold in grandfathered funds), except for one fund that I'm dabbling in and expect to build up over time.
WMT 39.7 %
MMUFX 9.6 %
401K 9.8 %
FDCAX 6.8%
-MY HOLDINGS-
FSAGX 5.5%
FCBFX 5.3%
Gary
Have about 6% in each of several stock funds (VDIGX, NSEIX,FAMVX,TWEBX,TBGVX,FMIJX,FPIVX, FPACX) plus about half that in several small cap funds (NNLEX, FAMFX,GPIOX). And a bit in T. Rowe Price's new global allocation fund (RPGAX).
Stan