Home > Boards > Free Zone > A.I.M. > A.I.M. "In Depth" Q&A (AIMQ&A)

Safe For Mutual Funds-Aug 11, 2001

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
extelecom Member Profile
Member Level 
Followed By 53
Posts 57,638
Boards Moderated 3
Alias Born 01/30/02
160x600 placeholder
Consumer Prices on Deck -- Data Week Ahead
The following are forecasts for this week's remaining U.S. data from a survey compiled by The Wall Street Journal.
Correction to Blackstone Buys Shares From James Article
Philips Gets FDA Clearance to Expand Patient Monitors Across U.S.
Warren Calls for Full Disclosure of Trading by Fed Governors; WSJ Survey Finds Inflation a Pressing Concern for U.S. Voters
U.S. Crude-Oil Stockpiles Likely Decreased in DOE Data, Analysts Say
Supernus Pharmaceuticals Resubmits NDA for Parkinson's Disease Treatment
Volkswagen Expects Chip Supply Shortages to Remain Challenging in 1st Half 2022
FTSE Rises, Transportation Stocks Fall on Potential Government Omicron Measures
Top Company News of the Day
Blackstone Buys Back $500 Million in Stock From Retiring Executive James
EUROPEAN MIDDAY BRIEFING - Stocks Rally Stalls for Now as Omicron Risks Weighed
FTSE Gains; Berkeley, Rivals Rise as Traders Shrug Off Price Fears
North American Morning Briefing: Futures Point to Modest Gains After Powerful Start to Week
Deutsche Post Names Tobias Meyer as CEO as of May 2023
FTSE 100 Rises as Berkeley Results Lift Housebuilders
Nestle Cuts Stake in L'Oreal With $10 Billion Deal -- Update
Centrica to Sell Spirit Energy's Oil & Gas Assets in Norway -- Update
Denmark to Launch Debut Green Bond in January, Will Apply 'Twin Bond' Method
FTSE 100 to Edge Lower After Recent Rally
Santander Increases Stake in Mexican Subsidiary
BHP Still Backs Worker Vaccine Mandate, Will Proceed With Reconsultation
extelecom Member Level  Tuesday, 03/05/02 09:20:41 AM
Re: None
Post # of 367 
Safe For Mutual Funds-Aug 11, 2001

Adjusting safe for mutual funds
I have SAFE at +/-10 for my Stocks and I get trades flowing, and am pretty happy there. In my mutual funds, they all act so tame (6 month picture) that I get no trades. Is there any rule of thumb on how to adjust SAFE (+/-4, 5, 6, 7, 8) for mutual funds to ride the ripples ? Is calibrating it to the Screen-o-Matic (SOM) volatility value ever been tried ?

Should I exit each mutual and replace it with, say, the top 5 stocks (start 5 AIM programs) instead ?

I'm trying to make money here !



Hi N, The more diversified the Mutual Fund, the less volatility you'll see. On my funds that pretty much follow the S&P 500 or other broad indexes, I've been using a total SAFE (buy plus sell) of about 10% overall. Then, depending upon your own decisions, you can split it up or bias it towards selling or accumulation. Once you've settled on a SAFE and Minimums range that's satisfactory, then just sit back and relax.

The nice thing about mutual funds is that we rarely lose money. They take three steps forward and only one back most of the time. Not many diversified funds to hits this last year of 50% or more. Therefore, although not as exciting as individual stocks, there's a much lower risk profile also. After about a decade of my IRA being in a mutual fund and my personal account being mostly in stocks, at the moment they're both up about the same amount. Last March, 2000, my personal account was higher, and at the April 2001 my personal account was lower (in percent return). So, although my personal account has more volatility, it's not had that much different a return.

http://www.aim-users.com/vhstbr.gif (personal account)
http://www.aim-users.com/virabr.gif (IRA account)

These two graphs show the differences. One is smooth and steady the other is bumpier. Since the results are similar, the mutual fund route is probably the easier. It still trades, but only when there's good reason.

As an alternative to individual stocks, you might want to consider using Sector Funds. Pick the sector funds that you feel have great 5 to 10 year growth potential and AIM them. This is a low key way of getting AIM more active and also structuring your portfolio the way you feel the world economy will travel long term. With Sector funds you'll want to use total SAFE values of 20% (again buy SAFE plus sell SAFE). I've set mine up defensively with the total SAFE being on the Buy side and am letting "vealies" handle excessive build-up of cash on the Sell side.

At http://www.aim-users.com/sp_rprt.htm I give some ideas on how to set up SAFE for various mutual funds. Look for the SAFE (Resistance) suggestions based upon Bull and Bear performance. Hope this all helps.

Best regards, Tom

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
Current Price
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist
Consent Preferences