Sit Mutual Funds Tops Barron's 2016 Best Fund Families List
In its annual Best Fund Families issue, Barron's names Sit Mutual Funds as the top fund family. Barron's measured manager skill across five fund categories. The complete list of ranked fund families is available online.
Barron's Best Mutual Fund Families publication dated February 8, 2016. Sit Mutual Funds was ranked #1 in 2016. Barron's is a trademark of Dow Jones & Co., L.P. All rights reserved. Reprinted with permission.
Manage Risk With Asset Allocation
Asset allocation is a very important part of risk management within an investment portfolio. By investing in multiple asset classes, such as stocks, bonds, real estate, etc., that do not have closely correlated returns, investors can lower the variability of the returns that their portfolio experience over time. After an allocation method has been selected, periodically rebalancing the portfolio becomes an integral component to this process.
Through different allocation and diversification strategies, it may be possible to create portfolios with reduced risk (as measured by return variability) that can produce more consistent returns. For example, the S&P 500® Index, which is often used as a proxy for U.S. large cap stocks, fluctuated in annual returns from a low of -37.00% (2008) to a high of 26.47% (2009) for the five years ended December 31, 2012, while the Barclays U.S. Aggregate Bond Index, a proxy for the U.S. taxable bond market, only fluctuated between +4.22% (2012) and +7.84% (2011) over the same time period. During the calendar year of 2008, a portfolio comprised of holdings from both indices would have experienced a smaller decline than one made up entirely of the S&P 500 Index. In 2012, investing only in bonds (as defined by the Barclays U.S. Aggregate Bond Index) would have produced a positive return of 4.22%, but adding stocks to the equation would have increased the return on a portfolio for that year.
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