No. of Recommendations: 0

I was considering 50% Index Fund, 25% Balanced and 25% Growth. Or would I be better off being out of a Balanced Fund?


Its time to avoid the index funds. Some predict sideways movement in the broad markets through the end of the year and maybe into 2003 depending on the actual recovery activity. Managed funds should do better in this market.

As for a mix, here is my recommendation

20% Bond fund
20% Small/Mid cap growth
20% Small/Mid cap value
20% Large cap growth
20% Large cap value

Small and mid-caps have done very well over the last year and when the recovery really takes hold Large caps should do better. Value has done better than growth over the last 2 years and it should still do well. Growth will pick back up after the recovery is well underway.

Bonds have been the winner the last 2 years. Its good to have them in the mix if they are doing better than money market.

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