FMD Capital Management

Posts Tagged: balanced fund

Sensible Tips For Constructing A Well-Balanced Portfolio

Written by David Fabian, March 27th, 2017

Constructing a well-balanced portfolio is a fine art that can be lost among the shuffle of collecting individual positions.  Too often, investors are more concerned about finding the right stock or jumping on a new trend, rather than analyzing how it fits within their accounts.

Jumbling together a random series of stocks or funds without any sense of cohesion makes it more likely that you will abandon them at random (inopportune) moments.  That path leads to uncertainty of past decisions, weak correlation with the markets, and streaky performance at best.  Instead, matching all the right pieces together to suit your risk tolerance and investment strategy will have a meaningful impact on your behavioral choices through good times and bad. Read more

Should You Invest In ‘Fund Of Fund’ ETFs?

Written by David Fabian, October 04th, 2016

Most investors associate exchange-traded funds (ETFs) with the benefits of diversification, liquidity, low costs, and transparency.  These factors make them extremely attractive to both short-term traders and long-term investors alike.  There is also a subset of ETFs called “fund of funds” that take diversification to the next level and may require deeper analysis to assess the value proposition they suggest.

These baskets incorporate a group of underlying ETFs or closed-end funds as their primary investment allocation rather than direct exposure to traditional stocks or bonds.  The benefit is that one of these vehicles can potentially own just 8-12 underlying funds and invest in a large swath of the global marketplace.  However, this structure can also impose an additional layer of fees and potentially obscure exactly what the shareholder owns.

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4 Funds To Buy If You Don’t Know Anything About Investing

Written by David Fabian, August 30th, 2016

There is a stigma associated with investing that it is complicated and fraught with risks.  Those who have never been taught how stocks and bonds work can be intimated by the process of putting their money in the market for fear of making a mistake.  For as well all know, a mistake in investing is measured in real dollars lost.     Read more

Pondering a Return To Our CEF Roots

Written by Michael Fabian, March 03rd, 2016

Out of the sea of uninteresting, useless, or junky funds in the CEF universe, one fund that I have always taken a personal and professional interest in is the Guggenheim Strategic Opportunities Fund (GOF).  This was one of those funds that in the early days was easy to predict and trade based on the typical risk aversion, investor appetite, and premium/discount analysis.  Furthermore, it has sported an extremely ostentatious yield in relation to its peers, which has kept investor interest brisk to say the least. Read more

Vanguard Wellesley Income Fund Shines On

Written by Michael Fabian, January 28th, 2016

It wasn’t that long ago that many were calling an end to the out performance that has persisted for years in the Vanguard Wellesley Income Fund (VWIAX) in light of rising interest rate concerns.  After all, how could a fund shackled by a prospectus rule to hold an abundance of fixed-income ever outperform high yield strategies near the low end of an interest rate cycle? Read more