AboutWarren Boroson Expertise Author of "Keys to Investing in Mutual Funds" (Barrons), "Ultimate Mutual Fund Guide" (Probus), "How to Pick Stocks Like Warren Buffett" (JKLasser), and "The Reverse Mortgage Advantage" (McGraw-Hill). Former financial columnist for Gannett News Service.
Experience Author of 20 books; winner of 1996 Personal Finance award from Investment Company Institute and Washington University. Formerly on staffs of Money and Sylvia Porter's Magazine. Had a radio program (on WEVD) about mutual funds and a newsletter, FundDigest.
Question I have a portfolio of funds that is rated moderately aggressive. In the last six months, it has performed at less than the S&P index by over 3%. My advisor says more time is required for it to beat the S&P. Should I hang in there or look for a new advisor? Thanks for your input.
Answer Dear Jim--
Visit a large library, go to the reference desk, and ask to see a copy of Morningstar Mutual Funds. Are you familiar with it?
Look up your funds. The thin booklet will give you a fund's rating--one star to five (best). It will also tell you how the fund has performed and how risky it has been.
Next to the listing will be a page number.
Look up the fund in one of the thicker booklets. M* will forthrightly tell you whether a particular fund should be held or sold.
If M* is dubious about a good percentage of your funds, you should look for a new adviser.
And if you decide to start doing things yourself--building a better portfolio--M* has lots of recommendations.
