2 or 3 mutual funds are enough for anyone, a fund legend says

The Ticker

July 28, 1999|By JULIUS WESTHEIMER

MANY INVESTORS have done quite nicely with mutual funds, but John Neff, who made money for lots of folks when he ran Vanguard's Windsor Fund, warns that holding too many of them can dull a portfolio's performance.

"Nobody needs more than two or three mutual funds," Neff says. "Holding too many funds is dedicating yourself to mediocrity. Most mutual funds trail the market."

"Purchases of stock mutual funds are down almost 50 percent this year compared with a year ago," notes Kiplinger's Personal Finance Magazine.

WALL STREET WATCH: "S&P P/E ratios stand at 26 times earnings, one of highest post-war levels. Be cautious. And recent stock performance July-to-October was treacherous." (Hardesty Capital Management)

"Use the `dollar-cost averaging' strategy -- invest a set amount of money each six months when buying high-tech stocks." (Eugene Peroni Jr., John Nuveen Co.)

"The market isn't so pricey that one should sell aggressively, but don't chase stocks higher. Stocks won't be cheap unless they're 15 to 20 percent lower." (Ed Kerschner, PaineWebber)

"There's no doubt that the `sweet spot' in the market remains the mid-capitalization arena." (Louis Navellier Growth Letter)

Pub Date: 7/28/99

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