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Subject:  Re: Risk-Adjusted Returns: Relevant? Date:  2/23/2002  1:35 AM
Author:  jkm929 Number:  180 of 297

When you're spending, lack of risk is very important!

However, is this necessarily the case for someone who is not spending, but is constantly adding to the portfolio...?

If you plan to periodically invest money in a mutual fund and you have a choice between two funds that both have the same total return as the market over time, but one is more volatile than the market and the other is less volatile than the market, you'll do better investing in the fund that is more volatile than the market because you'll get more of a market beating boost to your peformance from the effects of dollar cost averaging.

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