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Multi-Asset Mutual Fund Portfolio

September 2014

This recommended investment portfolio is one of 20+ mutual fund portfolios that we've assembled for investors with different time horizons and risk-tolerance levels to consider. Visit our Portfolio Finder to see them all.

 
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Multi-Asset Mutual Fund Portfolio

For investors who want out-of-the-box choices
 40% Stocks |  15% Bonds |  45% Alternative | 


 Data through October 31, 2017

FUND NAME SYMBOL % OF
PORTFOLIO
YTD
RETURN
1-YR
RETURN
3-YR
RETURN
5-YR
RETURN
10-YR
RETURN
MAX LOAD EXPENSE RATIO
BondFidelity Convertible SecuritiesFCVSX5%8.6%10.83%2.32%8.38%4.26%none%0.45%
BondHarbor Bond InstlHABDX104.822.822.942.435.16none0.51
AlternativeMerger FundMERFX2034.41.812.432.03none1.4
AlternativeMetropolitan West Unconstrained Bond MMWCRX103.323.332.242.87none1.04
AlternativeData not foundTFSMX15none
StockVanguard Total World Stock Index InvVTWSX4019.9223.718.2111.16none0.21
   1009.8111.514.275.91.14 0.53
** Closed to new investors. # Closed to new investors; other share classes are available.
r Maximum redemption fee charged when you sell shares. s Front-end load; redemption fee may apply.
— Fund has not existed for the specified time. Source: Morningstar, Inc..

There's been an explosion in the number of alternative investment strategies available through mutual funds — a welcome development for investors who want their portfoio to be as disconnected as possible from the market's gyrations.

They don’t promise to beat the broad market, but they will offer diversification (they will zig when Standard & Poor’s 500-stock index zags, for instance).

Bear in mind, however, that even though these kinds of investments can help manage risk in your portfolio, they come with risks of their own. Investors should add alternative investment exposure to their core portfolio of stocks, bonds and cash—not replace it. That's why we've used them to leaven a portfolio that includes stock (40%) and bond (15%) standbys.

The mutual fund portfolio includes a merger-arbitrage fund (MERFX) that buys shares of takeover targets after a buyout or merger is announced; a market neutral fund that invests in small and midsize companies but keeps an equal ratio of long and short positions (TFSMX); and a go-anywhere bond fund (MWCRX).