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Smaller Accounts Portfolios FAQWHO ARE THE "SMALLER ACCOUNT PORTFOLIOS" FOR?The "Smaller Accounts Portfolios" are for those with less than $25,000 to invest. They're helpful to get you up and going, and you feel more secure having them guide you. But eventually you'll outgrow them. These portfolios are offered as a guide to those who don't have large portfolios and are just beginning to get comfortable in their understanding and use of mutual funds. WHY NOT JUST USE THE REGULAR SMI STRATEGIES?Actually, you are. SMI's "Smaller Accounts Portfolios" are simply scaled-down versions of Upgrading, designed for those with lower account balances. This eliminates many of the problems you might otherwise run into, such as fund minimum purchase requirements and the need to hold more funds than you can currently afford. IT SEEMS THE FUNDS RARELY CHANGE IN THE "SMALLER ACCOUNTS PORTFOLIOS". WHY IS THAT?These portfolios, we tolerate the possibility of less than top performance to accommodate the needs of smaller Level 3 accounts. As a result, these portfolios are less active than their Level 4 equivalents. The telephone symbol WHAT IF MY ACCOUNT IS AT AN ORGANIZATION OTHER THAN THOSE LISTED?Follow the Generic For example, if you want to create an Upgrading portfolio at Fidelity with $12,000, you would invest 30% of your money in one of Fidelity's better performing stock funds from either Risk Category 2 or 3, 30% in a fund from Risk Categories 1 or 2, and 40% in another fund from either Category 1 or 2. Then, refer to the Fund Performance Rankings Members Only to find the highest-ranked Fidelity funds in each of the needed Risk Categories. [back to top]WHEN MY ACCOUNT REACHES $25,000, SHOULD I START A NEW ACCOUNT FOR LEVEL 4?No, the idea is for your initial Level 3 account to eventually grow into your Level 4 Upgrading account. The only difference will be that when your account reaches $25,000, you can stop using the simplified "Smaller Accounts" fund recommendations, and start using the main recommended funds in each month's issue of SMI. [back to top]WHY AREN'T THERE ANY BOND FUNDS LISTED IN THE "SMALLER ACCOUNTS PORTFOLIOS"?That's primarily because most "Smaller Accounts" investors tend to be young, and are typically looking for growth as a result. These portfolios are designed to keep you invested 100% in stock funds. However, if you prefer, you can reduce your risk by adding a bond fund into the mix and changing the percentage allocations to suit your preference. [back to top] |
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portfolio allocations, which tell you how to allocate your money, and then refer to the 