Mutual Fund screening
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Nov 26, 2009 3:04 am
Whats your process?
In the begining I emailed all our MF vendors for their best five and why. I had a couple hundred to go through. Next I kept funds older then five years and managers with over three years tenure. After that I culled funds that drifted from their category chasing yeild or whatever. After that we built a matrix by comparing rating,risk,return,alpha,beta,sharpe etc etc. I email the matrix to all the mutual fund vendors once a quarter and ask for three positions they think they can improve on. And the process continues.Personally I prefer Index Funds and ETFs. But it helps to have the matrix to keep up to date on quality MF when talking to clients. And after you get familiar with the funds that fit your particular investment style you will find out and remember funds that perform better in a bull market and funds that perform well in a bear(or don't loose as much) but of course it is always using past history to predict future returns so who knows...
I utilize a similar process: who brings the best bagels.
I check to see who is willing to sponsor a seminar.
I use the funds with the hottest wholesaler. Currently I am selling a lot of Lincoln Life Insurance
American Funds*leans back, casually takes a sip of cherry kool-aid, leaving a nice red kool-aid stain on his rookie upper lip*