chinaco
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Feb 14, 2007
- Messages
- 5,072
Has anyone come across articles of the benefits of slice and dice vs all in one approach.
A couple of examples (not depicting the bond part of the portfolio):
All-in-one Stock fund example:
There are two scenarios:
It would appear to me that an all-in-one fund would be fine during accumulation assuming the % of stocks in each country and cap are acceptable. The Manager would rebalance to the allocations for stocks as each country and cap rises and falls.
During distribution it would seem that the slice and dice might have an advantage since you could sell up securities (that performed well at different parts of the business cycle). Where as an all-in-one fund would require you to sell a portion both good and poor performers at the time.
Anyone read any research on this or have thoughts?
A couple of examples (not depicting the bond part of the portfolio):
All-in-one Stock fund example:
- X% Total US Market
- Y% Total FTSE (ex US)
- x% S&P 500
- y% Mid Cap 400
- z% Small Cap index
- w% European Index
- v% Pac Index
- u% Emerging Market Index
There are two scenarios:
- Accumulation (working and adding to investments)
- Distribution (selling and funding retirement)
It would appear to me that an all-in-one fund would be fine during accumulation assuming the % of stocks in each country and cap are acceptable. The Manager would rebalance to the allocations for stocks as each country and cap rises and falls.
During distribution it would seem that the slice and dice might have an advantage since you could sell up securities (that performed well at different parts of the business cycle). Where as an all-in-one fund would require you to sell a portion both good and poor performers at the time.
Anyone read any research on this or have thoughts?