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Originally Posted by kv968
I know you want to be aggressive (which is good) but you should really set up some "core" funds first and build off of those. It sounds like you're keeping track of what's going on with your investments (which is also good), but it seems like your allocation is going to go all over the place with all the funds you're adding. You should sit down and decide what percentage you want allocated to each style and size. You have the stock/bond ratio set but you need to determine what percentages you want within each. If you don't keep track of that you're going to find that you have way too much in one sector and not enough in another. TRRDX (although not quite the stock/bond ratio you'd like) might be a good core fund to start with.
It's also great that you're willing to keep track of funds that aren't performing well due to manager changes and the like however you have to realize that due to the structure of most mutual funds, managers can't just pull out of a sector because it's not "hot". That's why having a diversified portfolio that covers all sectors is key.
And a couple of other things just to comment on...JMVSX is closed to new investors unless it is available to you through some other method (ie. work). And the reason CGMFX and CGMRX fell considerably a couple of weeks ago is that they both had huge capital gains distributions.
I don't mean to sound preachy or anything. I just want you to realize the benefits and risks of having and not having a diversified portfolio.
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You have some good points here. Yet another reason that I like to purchase funds such as CGMFX is because the manager IS free to move in and out of a particular arena where as most managers essentially have their hands tied in regards to the amount of risk they can take. You'll notice that CGMFX is 99.12% stock and has over 75% of it's assetts in just three sectors. I like the fact the Ken Heeber can put larger portions of the pot in the sectors that he thinks will make the most money at any given time. Most funds will not allow such risks.
I didn't see that JMVSX was closed to new investors. I'll have to take another look and see how I missed that. Oh well, it was on the bottom of the list anyway!
