started value averaging back in

[CCdaCE]

... and very little mention of the 'January effect' this year. It's been great.

-CC

[smileydog]

I'm a bit heavy on my international per my AA but at this stage I might should just wait it out...

[Dude]

Quote:

Originally Posted by mathjak107 as expected my actively managed funds didnt drop as much as my index mix. i run 2 seperate growth portfolios. one active and one etf . i tend to favor the active mix. not onlythru the years has it performed better but in times the markets down the index funds stand no chance of dropping less or making money. at least my active stand a small chance of catching the right sectors. but none the less my latest strategy is to run both.

I also run both. Since 12/31/07, my active port (Fidelity Freedom Fund 2035, composed of 91% actively managed/9% index funds) ROI is -8.98%, my indexed port (Vanguard Target Retirement 2035, 100% index funds) ROI is -8.76%, so indexed port has performed 0.2% better. So much for downside protection of active management, in my case

[mathjak107]

tough to compare with target funds as they are bound by certain guide lines and the percentages of asset classes are very different as well as limitations on what they use to fill the equity buckets. as an example at fidelity the freedom funds use other fidelity funds and only those funds . a manager isnt free to weight a certain way

[cyclone6]

One thing seemingly overlooked in mathjak107s original post is that he mentioned value averaging back in, not DCA. For those of you not aware (and for those of you who are, sorry for repeating boring old knowledge) VCA is different than DCA and produces better results approximately 95% of the time. Here are a couple of links with just the basics:

Choosing Between Dollar-Cost And Value Averaging

Invest FAQ: Strategy: Dollar Cost and Value Averaging

There are other, much more detailed statistical analyses available via a web search.

I am also planning on starting a VCA program here in the next month or two - to last over 3 years. DCA is just a little bit easier to implement - set it once and forget it - where you need to determine how much to contribute each period for VCA. But the probable extra return from the VCA approach is enough for me to pull out the calculator once a month to see how much to throw in...

[Dude]

Quote:

Originally Posted by mathjak107 tough to compare with target funds as they are bound by certain guide lines and the percentages of asset classes are very different as well as limitations on what they use to fill the equity buckets. as an example at fidelity the freedom funds use other fidelity funds and only those funds . a manager isnt free to weight a certain way

I can see your points. However, you would think that the multiple managers of the 22 underlying actively-managed funds that make up Fidelity Freedom 2035 have some freedom to change weightings in their own funds and thus could pare losses (compared to the indicies) in a steep drop, which would roll up to the top. I guess not!

[mathjak107]

the underlying funds could change but only within the framework of the goals of the fund. as an example equity income is always the leader in financial stock holdings. growth company is always heavy in technology. the target funds are locked into these funds and their good or bad sectors that they are holding. in my case of my active funds i use the fidelity insight newsletter so we are fine tuning slightly for major trend changes and not just the noise. thats been great for me for 20 years

[Dude]

How can I find out more about the Fidelity Insight Newsletter? Is it published by Fidelity? Is it by subscription? Thanks.

[mathjak107]

just type in fidelity insight the web site will come up. its an independant newsletter written by eric kobren with a 20 year track record.

[Dude]

Thanks, found it.