Can you recommend any of these mutual funds?

Question

RIRBX Amer Funds CpIncBldr R2

RERBX Amer Funds EuroPac Grth R2

RGABX Amer Funds Growth Fund R2

RSLBX Amer Funds Sm Cap World R2

MHCAX MainStay Hi-Yield Corp Bond A

FISRX Franklin Income R

JDSRX Janus Adv Sm Co Val R

RRRAX DWS RREEF Real Estate Sec A

RBFBX Amer Funds Bond Fund R2

RCWBX Amer Funds CapWrldBd R2

RKBXX Amer Funds Cash Mgmt Trust R2

RICBX Amer Funds Inv Co Am R2

RGVBX Amer Funds US Govt R2

SUCAX DWS LifeCompass Retirement A

SUPAX DWS Growth Allocation A

Can you recommend against any?

These are my only options.

Thank you.

Answer 1

No.

I would get rid of all of them. 80% of mutual fund managers underperform the the major indexes. So why not just own the indexes?

I would look at "Dollar Cost Averaging" in the following.

S&P 500 Index

MidCap 400 Index

Russel 2000 Small Cap Index

Holding in a "Roth IRA."

Answer 2

What -- Is the 401(k) adviser on crack?  Some good options, many bad options...overload on bonds...and no good way to build a low cost balanced portfolio.  In a word, yuck.

Although don't feel bad, this is unfortunately typical of 401(k) plans in the US.

If you force me to use these funds and assuming you are not over 50 yet, I would allocate as below and hope for better options in a couple of years.

50% RKBXX Amer Funds Cash Mgmt Trust R2

25% RGABX Amer Funds Growth Fund R2

10% RRRAX DWS RREEF Real Estate Sec A

10% RERBX Amer Funds EuroPac Grth R2

5% RSLBX Amer Funds Sm Cap World R2

Answer 3

Without having more information about your personal information, such as age, current income and other data such as risk tolerance, martial status, and demographics it would be very inappropriate for me or any other responsible person to provide specific investment information in this type of media.

And for you to accept specific information from those that do not know any of the required information would be very foolish on your part.

You can go to Morningstar.Com http://www.morningstar.com/ and get an unbias opinion of the funds.  Morningstar rates Funds by giving them up to 5 star ratings.

You could visit MSN Money http://moneycentral.msn.com/home.asp they too have a section for mutual fund ratings.

You could even call the fund company itself to get an honest opinion based on you personal information

Answer 4

I assume these are 401(k) or similar options provided by your employer. My advice is a balance of stocks and bonds. The "stocks" should be a low cost S&P 500 index fund or low cost total market oriented fund. The "bonds" should be a mix of treasury, government, and corporate bonds. The balance should be consistent with market conditions or your personal preference. The default is 50% stocks, 50% bonds.

I can not tell which one (if there is just one) maps to a S&P 500 index fund and which one a diversified bond fund. Amer Funds Bond Fund may be a diversified bond fund; Franklin Income may be too. Read the descriptions and the associated costs.

You do not need:

-Amer Funds EuroPac (stick with America!)

-Amer Funds Sm Cap World (stick with America!)

-MainStay Hi-Yield Corp Bond (not diversified; no safe bonds)

-Janus Adv Sm Co Val (small company, value only)

-DWS RREEF Real Estate Sec (real estate only)

-Amer Funds CapWrldBd (another foreign investment?)

-Amer Funds Cash Mgmt Trust (likely a money market)

-Amer Funds US Govt (not diversified; no corporate bonds)

-LifeCompass Retirement (bogus fad-based "retirement" fund)

Answer 5

In general American Funds are very good funds.  I personally am not a big believer in any fund called a growth fund,  but if I were going to make an exception it would certainly be American Growth Fund.  I think EuroPacific is a good holding.  Investment Company of America has not had too good a record recently.  I think that might be due to change.  I believe that a portion of ones funds currently should be invested in Cash management but not bonds.  One of my favorite American Funds is not on your list.  Income Fund of America.

You will want to not invest all of your retirement into any one.  Here is a sort of possible allocation to consider.

25% RKBXX,  15% RERBX,  20% RGABX,  20% RICBX,  10% RSLBX, 10% RIRBX.  Something along those lines.  If interest rates ever move up to a reasonable level of say 6% then it might be time to consider a bond fund instead of a money market.  

Answer 6

Although "the Old Guy" did not directly answer your question he did provide you with some very sound advice.

Those of us in the industry would not and could not properly pass judgment on your portfolio without knowing about you.  There are no one fit all portfolio they should be tailored for you personally.