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Greetings MartinCahn,

To me, the index fund looks less promising. It's current value is less than half that of the value/income fund and doesn't appear to be performing as well.

Now, did you note that the value fund's managers started at the end of 1999? Do you wonder if the market is going up how well this fund that has a value bias will do? I know I would as since March 2000 value has done better than growth but that is subject to change in the future.

Am I being Foolish keeping it where it is? And what about diversifying? I hear a lot about that, but, especially with the funds my plan has to offer, doesn't really look like a good idea.

I don't know. Did you want something that would be conservative on both up and downside? Do you not feel comfortable riding the market? Let's not forget that if this was before 2000 that you'd be looking at a fund that underperformed the index under its former managers for 5 whole years. http://quicktake.morningstar.com/Fund/TotalReturns.asp?Country=USA&Symbol=DVEIX shows this by that green line going much higher than the red I believe.

The idea of diversifying is a good one but it does matter which options and strategies you care to implement since some people may use a dozen or more funds to get their idea of diversified while others may be comfortable in only one fund depending on the holding(VASGX for example has a ton of stuff in its portfolio).

By all means ask me any questions if the above isn't being clear enough. I'm intrigued to see what others think I ought to do so early in the game.

I think the key point here is to get that there are styles that may be more or less aggressive then the general market most of the time. When I say most I mean that there are times when value can get smashed up as noted in http://news.morningstar.com/doc/article/0,1,5643,00.html

JB
(Who is still 401kless...)
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