gcgang
Thinks s/he gets paid by the post
- Joined
- Sep 16, 2012
- Messages
- 1,571
Is this fund as good as it seems?
I was reading about the Blackrock Global Allocation fund (MALOX). The article said, "since the fund's inception (1989), it has recorded an annualized return of 10.63% through the end of last year, beating the benchmark portfolio of 60% global stocks and 40% global bonds by more than 250 basis points a year. A $100,000 investment in the fund would have grown to over $1.1 million today, $500,000 more than the benchmark portfolio. That outperformance has come with about one third of the downside."
I have a few questions maybe some of you here can help with: Can this be true? How does this compare with the 60-40 portfolios that most here use, like what Vanguard offers? How can they say it had one third if the downside? How is that measured?
If it really has been that good, I'm sure if I invest in it the performance will go in the toilet. But better performance, especially with less risk, sounds good. Less risk is getting more important to me every day.
Anyone help?
I was reading about the Blackrock Global Allocation fund (MALOX). The article said, "since the fund's inception (1989), it has recorded an annualized return of 10.63% through the end of last year, beating the benchmark portfolio of 60% global stocks and 40% global bonds by more than 250 basis points a year. A $100,000 investment in the fund would have grown to over $1.1 million today, $500,000 more than the benchmark portfolio. That outperformance has come with about one third of the downside."
I have a few questions maybe some of you here can help with: Can this be true? How does this compare with the 60-40 portfolios that most here use, like what Vanguard offers? How can they say it had one third if the downside? How is that measured?
If it really has been that good, I'm sure if I invest in it the performance will go in the toilet. But better performance, especially with less risk, sounds good. Less risk is getting more important to me every day.
Anyone help?