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For a lifetime of investing, variety is the spice of life. As much as you might enjoy ice cream, you wouldn’t want it to be the only thing you eat at every meal. Just as your daily diet needs variety to ensure proper nutrition, your investment plan needs diversity – spreading your money among a variety of investments – to ensure a healthy nest egg no matter what happens in the markets.
Asset allocation.
A rational strategy for investing. Asset
allocation is the process of selecting a mix of
investments – stocks, bonds or money market
funds – that satisfy your needs, goals, and risk
tolerance… while adding diversity to your
portfolio.
How important is asset allocation for your investment success?
Industry research has shown that 90% of the
variance in investment performance is determined by asset allocation. Sure, your choice of specific investments and deciding when to buy or sell them can have an impact on your overall return. However, a well-diversified portfolio may be THE critical factor in determining how well your investments perform in the long run.
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What are the key factors for your asset allocation strategy?
What is your time horizon? This factor will vary, depending on how many years your money can remain invested. A shorter time horizon, for example, would indicate a more conservative portfolio strategy, regardless of your comfort level with market fluctuations.
How much risk can you handle? Risk
tolerance factors into the time horizon strategy, as it measures your tolerance for market fluctuations. For instance, an aggressive portfolio may not be right for you if you have a low tolerance for risk… even if you have a long-term time horizon.
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James Advantage Funds are offered only to US citizens
and residents and any information on the website is intended solely for
that purpose. Nothing on this web site should be considered a solicitation to
buy or an offer to sell any James funds in any jurisdiction where the offer or
solicitation would be unlawful under the securities laws of such jurisdiction.
For international investors please see Institutional.
The James Advantage Funds are distributed by IFS Fund Distributors, Inc., 303 Broadway - Suite
1100, Cincinnati, Ohio 45202. Call for a free copy of
the prospectus. Investors should consider the investment objectives, risks
and charges and expenses of the investment carefully before investing. The
prospectus contains this and other information about the investment company.
Copyright 2008 James Advantage Funds, Inc.
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