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I would like to get everyone's thoughts and help choosing between the following large cap funds for my retirement account: Parwx Focpx Nasdx Fbgrx Mseqx Or any others funds I should consider.
First of all, I'd think long and hard about how much you want to put in large growth at this point. The run has been magnificent and maybe it will continue for a while, but at some point it's going to end. It probably won't end nicely. For that reason, if I was making this decision for myself I would either dollar cost average making smaller investments now and larger ones once the market has corrected a decent amount or I would simply wait for a good correction so I don't risk spending years of retirement trying to catch up with where I started.
I don't know a whole lot about the funds you listed although NASDX is pretty straight forward. I'd at least do a little research on POGRX and AKREX. Primecap has an incredible record with it's various funds and this one is still open. Akre is also well-liked here although he hasn't been talked about much recently. Both have historically done better on a risk-adjusted basis than the average large growth fund, and M* says Akre incurs below average risk. Depending on how comfortable you are with volatility that might matter.
I follow only one fund on your list, PARWX, and while it's been a great fund over the years, to me it's not a fund for a down market, if you have any caution on that score. I agree with what LLJB said above about that.
You might look at JENSX, which is a more all-weather fund, with a clear process and tough screens for holdings.
POGRX is what I'd consider to be the current standard in large growth and the primecap team is arguably the best in the business. It's been consistent over the last 13 years and has the best fees I've ever seen outside of Vanguard. Easy to add to if you're going through Fidelity. MSEQX is solid, though. There are a few good funds in Morgan Stanley's lineup.
Otherwise, there's something to be said about just going with an index of the Nasdaq and letting that run.
@Carefree The below total return graphic is a busy chart with the funds you noted, but may help provide a perspective. I started the reference at about Halloween, 2007; as this was the beginning of the end of the high point for many equity sectors before the market melt of 2008. I also included VTI (a blended cap U.S. equity etf). I will also note that the growth and value side of U.S. equity has seen rotations in the past few years. Being that growth is hot one year and then it has been value's turn. I place these rotations into the big money moving around to discover overbought and oversold indicators to obtain maximum profits, regardless of other criteria, except technical indicators.
Why is POGRX easier to add to at Fidelity? I don't see it being NTF.
It's $50 when first purchasing, but then the fee is reduced to $5 on each additional purchase. Hopefully that has not changed...
To do a single additional investment to an existing TF-fund position at Fidelity, the drill is to set up (online) an auto-invest plan for the amount you want to add, let the first investment go thru, and then cancel; each auto-invest buy is $5. Take this route: Accounts & Trade // Account Features // Payments & Transfers // Automatic Investments. It still works.
IVW has a stronger record than all of the listed funds except PARWX. So not sure why I would pay as much as 1% more for questionable net returns, especially now unless you have no holdings in large cap growth.
Comments
I don't know a whole lot about the funds you listed although NASDX is pretty straight forward. I'd at least do a little research on POGRX and AKREX. Primecap has an incredible record with it's various funds and this one is still open. Akre is also well-liked here although he hasn't been talked about much recently. Both have historically done better on a risk-adjusted basis than the average large growth fund, and M* says Akre incurs below average risk. Depending on how comfortable you are with volatility that might matter.
You might look at JENSX, which is a more all-weather fund, with a clear process and tough screens for holdings.
It's been consistent over the last 13 years and has the best fees I've ever seen outside of Vanguard. Easy to add to if you're going through Fidelity. MSEQX is solid, though. There are a few good funds in Morgan Stanley's lineup.
Otherwise, there's something to be said about just going with an index of the Nasdaq and letting that run.
The below total return graphic is a busy chart with the funds you noted, but may help provide a perspective. I started the reference at about Halloween, 2007; as this was the beginning of the end of the high point for many equity sectors before the market melt of 2008. I also included VTI (a blended cap U.S. equity etf). I will also note that the growth and value side of U.S. equity has seen rotations in the past few years. Being that growth is hot one year and then it has been value's turn. I place these rotations into the big money moving around to discover overbought and oversold indicators to obtain maximum profits, regardless of other criteria, except technical indicators.
http://stockcharts.com/freecharts/perf.php?PARWX,FOCPX,NASDX,FBGRX,MSEQX,VTI&n=2424&O=011000
This graphic for the same funds is for the past 2 years:
http://stockcharts.com/freecharts/perf.php?PARWX,FOCPX,NASDX,FBGRX,MSEQX,VTI&n=505&O=011000
Regards,
Catch
Regards,
Ted
http://www.morningstar.com/funds/xnas/mpgfx/quote.html