I. Allocate Assets to Mutual Funds using AlphaProfit Newsletters
Different types of mutual funds available for investing include:
- Money market mutual funds that invest in cash equivalent securities
- Fixed-income mutual funds that invest in bonds
- Domestic equity mutual funds that invest in stocks of U. S. companies
- International equity mutual funds that invest in stocks of companies based outside U. S.
- Specialty mutual funds that invest in a specific sector
The following diagram illustrates the use of AlphaProfit model portfolios and fund ratings within the context of diversified investment portfolios.
AlphaProfit's newsletters and tools help you prudently allocate assets to different types of mutual funds and ETFs.
II. Allocate Assets to ETFs using AlphaProfit Newsletters
Exchange-traded funds (ETFs) are available as alternatives to most of the mutual funds stated above. Instead of using mutual funds, you can use different types of ETFs in your investment portfolio.
III. Sound Mutual Funds and ETFs Investing Strategy
Whether you invest in mutual funds or ETFs, different types of mutual funds and ETFs have different
risk-reward characteristics. The performances of the different types of mutual funds and ETFs correlate differently with the economy.
Sound investing strategy takes both risk and reward potential of the different types of mutual funds and ETFs into account. Investing
across different types of mutual funds or ETFs adds to diversification and helps manage risk.
The amount of dollars you allocate to different types of mutual funds or ETFs depends on your specific situation, including factors such as your investment objective, investment time horizon, and risk tolerance.
AlphaProfit recommends ETFs, Fidelity Select funds, and other sector funds to invest in sectors and industry-groups selected by the ValuM investment process. These recommendations enable you to construct customized
portfolios for managing your domestic equity and specialty portions of your assets.
AlphaProfit Core for the Domestic Equity Portion of Your Mutual Fund or ETF Portfolio
Use the AlphaProfit Core model portfolio for the domestic equity portion of your mutual fund or ETF portfolio.
The Core model portfolio strives for targeted
diversification through investments in sectors and industry-groups that are likely to outperform the market while leaving out sectors and industry-groups that may under-perform. The sectors and industry-groups
included in the Core model portfolio are chosen using the ValuM Investment Process.
The Core model portfolio seeks long-term capital appreciation.
Core Model Portfolio Long-Term Performance
AlphaProfit Focus for the Specialty Portion of Your Mutual Fund or ETF Portfolio
Leverage the potential of specialty mutual funds or ETFs by using the AlphaProfit Focus model portfolio.
The Focus model portfolio strives for tactful sector rotation using the ValuM Investment Process. This model portfolio includes relatively few sectors or industry-groups at any point in time. The Focus model portfolio seeks
Focus Model Portfolio Long-Term Performance
Fund Ratings for the Specialty Portion of Your Mutual Fund or ETF Portfolio
Based on market conditions, some of the preferred sector funds or ETFs may at times be rated 'Favored Buy'.
AlphaProfit fund ratings may be used to invest in sectors or industry-groups on an ad hoc basis.