Diversified Mutual Fund

[ferco]

What is the most diversified mutual fund on the market ie., one that is asset allocated between contains mid-cap, small cap, large cap; value and growth. What has been its performance over the past 20-30 years?

[FUEGO]

I would suggest Vanguard Total World Stock Index Fund (VTWSX).

"The fund employs a “passive management”—or indexing—investment approach designed to track the performance of the FTSE All-World Index. The Index includes approximately 2,900 stocks of companies located in 47 countries, including both developed and emerging markets. The fund invests in a broadly diversified sampling of stocks in the index that approximates the index’s key risk factors and characteristics."

It is basically a capitalization weighted worldwide index fund. It isn't even a month old yet, so no real track record, but you might try looking at the track record of the FTSE all world index to see how it did over longer periods of time.

I would consider this to be a good core holding for a simple taxable account following the "set it and forget it" style of investing. Maybe in a few years when the expense ratio goes down and the 0.25% purchase fee goes away I'll get in.

[cute fuzzy bunny]

Depends. Do you want bonds as well as stocks? Active or passive index management? Whats your objective from the diversification...lowered volatility, higher returns? What are you diversifying against? Stock market risks, bond market risks, inflationary risks, nation centricity?!?!? Are you looking for income, capital appreciation or both?!?!?!?!

[ferco]

CFB,

Totally equities

[cute fuzzy bunny]

What about the rest of the questions?

[Art G]

I'm gonna guess, Capital World Growth and Income. I'd think it would be the largest World income fund in existence, but I'm just guessing.
Somewhere there's a site where you can compare funds for overlap.

[cute fuzzy bunny]

Thing is, depending on exactly what the answers are it may not be doable with one fund.

Total world stock fund is well diversified across nations, but I dont think it has much small cap or smaller mid cap. Its also not really well diversified into some segments.

Even some funds like total stock market are primarily composed of the s&p 500 with small amounts of mid and small cap.

Its really hard to balance across nations and capitalizations without buying into a bunch of funds. Total world, US small cap, international small cap, maybe some sectors that are underweighted in the big total funds.

But it depends on what your objectives are, short of an academic exercise in building a portfolio that has worldwide presence in every cap size.

Such a portfolio might offer low volatility but poor returns and low income subject to a lot of foreign tax issues. Spun another way it might have horrific volatility but high returns, or even high income.

This is sort of like saying "I need a new car that'll do everything I need to do. What is it?"

[wcv56]

Try a few funds such as a total return fund
World Allocation Top Performers : Mutual Funds Center - Yahoo! Finance

Many have high front loads but stellar long term returns.
You can google for total return funds and find non loaded funds.

cgmfx has had stellar returns for a long time
The investment seeks to long-term growth of capital. The fund typically invests in the securities of between 20 to 100 companies at any one time. It may invest in companies regardless of the size of their market capitalization, but primarily invests in companies with market capitalizations of at least $100 million. The fund may invest in debt and fixed income securities of any maturity and any grade. It is nondiversified.

Add a good bond fund of your likes with what % you wish.

I prefer hedge funds for safety reasons, they can have as much cash
or short market in bad times. Always have a bad sector even in good
markets times to short. Can have as much bonds or short bonds when they like too. None of my hedge funds have lost money so far this year
as of today. Helps cut risk when they hedge using options at times.
Good and bad in areas of investments so take your time and research
well. Great time to compare who is and has done ok in this recent
market.

[innova]

Quote:

cgmfx has had stellar returns for a long time

And crazy high volatility, and its very non-diversified. Horrible advice in light of what the OP is asking for.

Quote:

I prefer hedge funds for safety reasons, they can have as much cash or short market in bad times. Always have a bad sector even in good

What about the ungodly expenses and 'we will take 20% of profits' fees?

It is nice that hedge funds can hold a lot of cash, but when the market turns hedge funds underperform, sometimes dramatically. Numerous studies have shown that audited hedge fund returns over the long term barely rival treasuries... hardly compelling.

Another point: An informed investor will look at long-term data and immediately conclude the way to be most confident of success over the long term is to own low-cost, well-diversified funds.

[wcv56]

CGMFX
I believe even those that are not experts doing their own investing
in mutual funds have the ability to buy a few good funds to diversify
by using average research. Otherwise use full service brokers or
licensed advisors ( I am not either).
Ken Heebner: Best Fund Manager Alive? - TheStreet.com

Hedge funds performance are reported net of fees.
Most have high water mark so to get the 20% bonus
must perform to a certain standard. Best of all unlike
mutual funds they do not have to stay invested during
bad markets, all cash if they want. Many conflicting
articles but the proff is in the pudding. Hedge funds on an average
have the best managers ( many were top mutual fund managers
that went on their own) and better net returns specially in bad market times.
Hedge Fund Performance: Good or Bad? - Seeking Alpha