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"That lends itself to having a broad-based fund or thinking creatively about funding".
Beginning in 1993 (he couldn't go back earlier because Total Stock Market was opened only in 1992), the mix would have averaged 9.6% yearly, a full point better than the performance on the single broad-based fund.
Beginning in 1993 (he couldn't go back earlier because the Total Stock Market fund was opened only in 1992), the mix would have averaged 9.6% yearly, a full point better than the performance on the single broad-based fund.
"We have to make up as much as possible for this financial blow, with a broad-based fund that governments, companies and civil society organizations can donate to," the Dutch minister said this week.
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Several broad-based funds offer lower-risk alternatives.
In the second half of the 20th century, nonprofit organizations that relied heavily on donated revenues increasingly turned to high-wealth individuals for major gifts, in comparison to broad-based funding mechanisms seen in previous decades (such as the March of Dimes campaign to end polio).
A good choice for many new investors is a broad-based stock fund.
For instance, if you like trading bonds, you might also buy and hold broad-based stock mutual funds in case that sector of the market outperforms bonds.
"We offer these individual funds, but it's our recommendation that people invest in age-based portfolios" or in broad-based stock portfolios, he said.
But they have, in the last couple of decades, made it possible for almost anyone to get good results in stocks: buying very broad-based mutual funds, index funds, exchange-traded funds and (with an eye on fees) variable annuities and holding them for a long time.
Mr. Altfest said investors could move a small portion of their holdings in a broad-based European stock fund to a fund that tracks only the German market.
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