The Best Mutual Funds for Growth Income Lay

The Best Mutual Funds for Growth & Income

Lay of the Land • Stocks – Economy – General – Segments – Risks? • Bonds – Inflation – Central Banks – Differentiation

Stocks Down, Funds Dominate • Decline in # of Stocks – 1996: 7, 400 – 2017: 3, 616 • # of Mutual Funds – 9, 356 • # of ETFs (Including ETFs-of-ETFs) – 5, 024 • # of Closed-End Funds (CEFs) – 530

Open, Closed or ETF • Open-End Funds • Net Asset Value (NAV) • Ease of Access • Diluted in Bull Market, Sold Out in Bear • Closed-End Funds • Set Capital • Focus • Premium/Discount • ETFs & Exchange-Traded Notes (ETN) • Targeted Opportunity • Internal Risks

Mutual Fund Selection • Fund Criteria for Portfolio • Identify Relevant Index • Identify Leaders in Performance (Outperformance vs. Benchmark Indexes) • Examine Times of Trouble • Examine Consistency of Positive Performance • Fee Structure Comparison (Apples to Apples)

Look Under the Hood • Portfolio Characteristics • Reported Holdings and Trades • Risk Criteria of Holdings • My Fundamental Assessment • Stocks (How Leveraged to Specific Shares) • Bonds (Dig into Individual Holdings and Sub. Funds) • Leverage and Liquidity

Buy, Sell & Own • Brokerages/Trust Companies – Open-End, Closed-End, ETF/ETN • Direct – Fund Families – Boutique • IRAs, SEP, 401 k/403 b – Individual – Sponsored

Strategies & Opportunities

Real Estate Investment Trusts (REITs) • Cohen & Steers Quality Income Realty (RQI) – Yield: 8. 09%; 5 -year return: 70. 42%; Avg. : 11. 24% – Outperforms VGSIX & VNQ; Discount: 7%

Banks • SPDR S&P Regional Banking ETF (KRE)

Utility Players • Vanguard Utilities ETF (VPU)

Petrol Pumping • Energy Select SPDR ETF (XLE)

The PIPEs are Calling • Goldman Sachs MLP Income Opportunities (GMZ) – Discount: 1. 3%; Yield: 9. 10%

Corporates Cashing In • Osterweis Strategic Income Fund (OSTIX) – Yield: 4. 49%; 10 -year return: 81. 54%, Avg. : 6. 14%

Mighty Munis Muscling Up • Blackrock Muni Income Trust II (BLE); 5. 38% • Nuveen AMT-Free Muni Income (NVG); 5. 39% • Nuveen Credit Income Fund (NZF); 5. 52%

The Preferred Way to Invest • i. Shares US Preferred Stock ETF (PFF); 6. 19% • Flaherty & Crumrine Preferred (PFO); 7. 44% Orange: Flaherty, White: i. Shares

Money Market Alternatives • Vanguard GNMA Fund (VFIIX), current yield 2. 93% – Worst year in last 10: -2. 22% (2013). Last 12 months: 0. 69% • Vanguard Federal Money Mkt (VMFXX), current yield 1. 80% • Double. Line Total Return (DLTNX), current yield 3. 43% – Worst year sinception: -0. 23% (2013) • Weitz Short Duration Income (WSHNX), current yield 1. 98% – Worst year sinception: -0. 07% (2013)

Time For Your Questions