MIGFX

RealityDry8233

This is really interesting! I didn't know you could hold individual stocks since birth like that. Since MIGFX is down over the past few years, would it make sense to hold for the long term recovery, or does that 4% growth over 5 years signal something concerning about the fund's strategy?

StockBrokenUSA

Though you’re right to call out the comparison with the benchmark, the Russell 1000 serves as a theme for compliance purposes. Not necessarily a “we need to meet or beat the benchmark” as a priority -when it comes to mutual funds.  Couple things MIGFX is doing intentionally is steeply reducing its exposure to the top 10 stocks weighting the R1000 and smoothing out growth.  So, even though they underperform (and underperform on sharpe ratio basis), there’s still a strategic benefit.  

StockBrokenUSA

What type of account was it set up in?  Expenses on the fund are quite high, but that’s an artifact of our time. You’ll notice since we were kids, much of what funds like MIGFX accomplish have been replaced by ETFs. Mutual funds tend to be expensive.  If you’re indifferent about the underlying investments in the fund and the taxes are something you can sit with, you might find value in what you’re suggesting. Really just depends on your risk tolerance. Some mutual funds like the one youre in will shift the portfolio intentionally to reduce drastic swings you might feel with a market-based ETF like VOO. Hence seeing very little gain recently. If in the future you use this fund for retirement, you may appreciate it smoothing out and still offering long term growth. This makes it easier to reliably divest with less timing risk.  However, if you’re in need to play catchup and your overall net worth isn’t where it needs to be, your ETF idea will give you a greater probability of doing just that. All comes down to your strategy and what’s gonna hurt most. 

ekdaemon

IANAE, I am also a relative newbie... but for what it's worth: > MIGFX So I'm looking at their site, and although they mention the Russell 1000 as their benchmark - they are not an index fund. They are actively managed. So the first thing I do is go to yahoo finance, and compare them aganist an actual Russel 1000 index fund, my random google choice being IWF. Over every single time scale - IWF beats MIGFX. I notice that MIGFX has an expense ratio of 0.7% compared to IWF's 0.2%, and MIGFX being a mutual fund - has a 5% "sales charge". On a slight tangent, I couldn't help also comparing both of those against the S&P 500. And the Russel 1000 itself has beat the S&P 500 over all time scales as well! Interesting. Wish I'd known that a week ago. If I were you, yes, I'd stop re-investing there, spread the money elsewhere so you can compare birds in hand, and not theoreticals.

kken21

Thank you!! This specific fund (MIGFX) has a 20% turnover. What is a good range to have? In addition, I’ve already got a decent amount of money in it, would it be wise to turn off dividend reinvestment to put it into another (lower turnover) fund? Appreciate the help.

frkmstr509

MIGFX is the MF ticker. Keeping that in the individual account.