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Old 04-20-2013, 04:22 PM
 
909 posts, read 847,049 times
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I was looking at tweaking an IRA that used to be a 401k I had rolled over. I didn't like the funds I had to pick from back when it was a 401k but now that it's an IRA there are tons of mutual funds to pick from... and two of them have really low expense ratio numbers (around 0.31-ish) which has to be considered really decent, no? The other also gets rave reviews... Lipper, Morningstar, Fund Mojo... everybody is in agreement on it... but I noticed the expense ratio is 0.94 - is that considered too high or not a big deal?

Thanks
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Old 04-20-2013, 04:28 PM
 
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Are you willing to give up $940 for every $100k you invest?
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Old 04-20-2013, 06:32 PM
 
Location: The Pacific NW.
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Last time I researched expense ratios, the average was around 1.4%. However, in this case, "the average" is too high for my tastes, especially when you can find funds with ERs that are a full percentage point lower or more, as you discovered.

For me, .94 falls within my acceptable range--IF the fund has shown itself to be superior (based on my OWN criteria, not someone else's "star ratings" or the like) or it gives me something that most other funds don't.

Otherwise, the best strategy when it comes to funds, IMO, is to take the path of least resistance and simply choose the lowest cost funds you can in your chosen categories. Over the long term, the biggest factor in determining the success or failure of your fund investing will be the performance of the various categories/assets and their allocations, not which specific funds you choose (although if you load up on funds with high ERs that will certainly be a factor too--negative, of course).

Last edited by LongArm; 04-20-2013 at 06:40 PM..
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Old 04-21-2013, 09:29 AM
 
909 posts, read 847,049 times
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Good info. Thanks.
I'll go ahead and shout it out and see that you guys think.
Janus Triton T (JATTX)



19.10 0.14(0.74%) Apr 19
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Old 04-21-2013, 09:34 AM
 
909 posts, read 847,049 times
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And, I looked at the moving average ("bolinger bands") for 1,3,6, and 12 months... and right now it's not anywhere near the top band. In the simplistic "buy low/sell high" concept - wouldn't that be a good time to spring on it.
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Old 04-21-2013, 10:10 AM
 
9,985 posts, read 6,379,372 times
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The fund manager is young, but talented, taking a look at their
top holdings its evident he thinks outside the box and does a lot
of footwork, hands-on - we're not talking about high profile companies
we're talking about gem digging. He seems to be very good at it. That's
the type of fund that you don't mind paying an expense ratio for. He has
more than doubled the return of the S&P. Small/Mid-Cap growth with
a sector-diversified allocation.
I would say buy it, but watch the market for an entry point, be patient
because the market is in a precarious position. Don't worry about missing
out, worry about buying too soon, because this fund is more vulnerable
to a correcting market than the averages are.
JGMAX - Mutual Fund chart - MSN Money
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Old 04-21-2013, 04:02 PM
 
24,692 posts, read 26,777,106 times
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Quote:
Originally Posted by TVofM View Post
I was looking at tweaking an IRA that used to be a 401k I had rolled over. I didn't like the funds I had to pick from back when it was a 401k but now that it's an IRA there are tons of mutual funds to pick from... and two of them have really low expense ratio numbers (around 0.31-ish) which has to be considered really decent, no? The other also gets rave reviews... Lipper, Morningstar, Fund Mojo... everybody is in agreement on it... but I noticed the expense ratio is 0.94 - is that considered too high or not a big deal?

Thanks
What is the name of the fund? .94 is on the high side, but it might be worth it it is truly a good fund.
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Old 04-21-2013, 04:09 PM
 
24,692 posts, read 26,777,106 times
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Quote:
Originally Posted by TVofM View Post
Good info. Thanks.
I'll go ahead and shout it out and see that you guys think.
Janus Triton T (JATTX)



19.10 0.14(0.74%) Apr 19
.94% for this fund is acceptable, and could even be considered inexpensive.

This is a small company stock fund. Small company stock funds are generally more expensive because they take more research...so .94 is actually pretty low for a small company fund. The average for a no-load small company growth fund is 1.22%.

The fund has a sort of short track record of only 8 years but it does have good/very good performance. The only concern I'd have with this fund is its large asset base of 4.8 Billion dollars. When small company funds start getting big, they tend to slow down in their performance. The other thing is...this fund has good performance IF you stay with it. It lost 40% in 2008. Will you really be able to stay with it if it dives 30 or 40%???? Most people will say "Yes" but when it actually happens, they bail out and then buy in again when the fund starts doing well again (after a good part of the gains have been made).

But overall, if you really commit to sticking with it, I say go for it. Just make sure you don't make it a huge slice of your portfolio...maybe 10% at the most.
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Old 04-21-2013, 05:23 PM
 
909 posts, read 847,049 times
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Quote:
Originally Posted by mysticaltyger View Post
.94% for this fund is acceptable, and could even be considered inexpensive.

This is a small company stock fund. Small company stock funds are generally more expensive because they take more research...so .94 is actually pretty low for a small company fund. The average for a no-load small company growth fund is 1.22%.

The fund has a sort of short track record of only 8 years but it does have good/very good performance. The only concern I'd have with this fund is its large asset base of 4.8 Billion dollars. When small company funds start getting big, they tend to slow down in their performance. The other thing is...this fund has good performance IF you stay with it. It lost 40% in 2008. Will you really be able to stay with it if it dives 30 or 40%???? Most people will say "Yes" but when it actually happens, they bail out and then buy in again when the fund starts doing well again (after a good part of the gains have been made).

But overall, if you really commit to sticking with it, I say go for it. Just make sure you don't make it a huge slice of your portfolio...maybe 10% at the most.

I'm at a "buy and hold" stage of life. I was looking at making it around 16% of the new IRA but can make it any amount... this is sort of starting over from scratch on this one. The other funds are pretty safe bets all... unless the entire dow/nasdaq tanks again. I'm with you on buying funds that are not overly ripe. I got some ACMVX a few years ago for the original IRA and it has taken off like a rocket... I liked that it was still pretty low when I got it.
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Old 04-21-2013, 10:22 PM
 
24,692 posts, read 26,777,106 times
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Quote:
Originally Posted by TVofM View Post
I'm at a "buy and hold" stage of life. I was looking at making it around 16% of the new IRA but can make it any amount... this is sort of starting over from scratch on this one. The other funds are pretty safe bets all... unless the entire dow/nasdaq tanks again. I'm with you on buying funds that are not overly ripe. I got some ACMVX a few years ago for the original IRA and it has taken off like a rocket... I liked that it was still pretty low when I got it.
I really like ACMVX. But 16% of Janus Triton seems a bit high...but it's up to you. Can you handle it if it drops 40% again like it did in 2008? Just my opinion, but I think small cap stocks are generally somewhat overvalued right now relative to large caps....so I'd consider owning this fund, but at less than 16%.
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