How to allocate money to my portfolio asset to get a higher rate of return?

financehunter · 02-13-2009, 10:49 PM

I have a 401k portfolio with a certain number of mutual funds in it. However my rate of return of the portfolio is always low, is there a way that I can allocate my money to get a higher rate of return for 401k portfolio?

starshard0 · 02-14-2009, 08:01 AM

In this economy probably not. You could shift the majority of your assets to stocks, or choose mutual funds with higher returns. I think at this point you'll just have to ride out the recession first.

KevinW · 02-15-2009, 11:11 AM

A good portfolio reflects the investor's individual situation and temperament. It's very difficult to give advice without knowing how close you are to retiring, whether your saving is on track, your personal attitudes toward investment risk, and the kind of funds available in your 401(k).

One piece of broad advice is to focus on your asset allocation, between stocks and bonds, first. There are some academic studies saying that decision influences portfolio performance more than any other.

Another broad suggestion is to minimize expenses, as indicated by the Expense Ratio on each fund. There are some other studies saying that in the long run low-expense funds work as well as high-expense ones, so you might as well only bother with cheap funds.

If you give some more information on your situation we could try to come up with some more concrete advice.

02-13-2009, 10:49 PM	#1
financehunter Junior Member Join Date: Feb 2009 Posts: 1 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	How to allocate money to my portfolio asset to get a higher rate of return? I have a 401k portfolio with a certain number of mutual funds in it. However my rate of return of the portfolio is always low, is there a way that I can allocate my money to get a higher rate of return for 401k portfolio?

02-14-2009, 08:01 AM	#2
starshard0 Senior Member Join Date: Apr 2008 Location: Monterey, CA Posts: 608 Thanks: 0 Thanked 2 Times in 2 Posts Reputation: (13)	In this economy probably not. You could shift the majority of your assets to stocks, or choose mutual funds with higher returns. I think at this point you'll just have to ride out the recession first. __________________ Why should you read my blog? Because I'm awesome, that's why. من جون جالت؟

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02-15-2009, 11:11 AM	#3
KevinW Member Join Date: Nov 2008 Posts: 77 Thanks: 0 Thanked 1 Time in 1 Post Reputation: (26)	A good portfolio reflects the investor's individual situation and temperament. It's very difficult to give advice without knowing how close you are to retiring, whether your saving is on track, your personal attitudes toward investment risk, and the kind of funds available in your 401(k). One piece of broad advice is to focus on your asset allocation, between stocks and bonds, first. There are some academic studies saying that decision influences portfolio performance more than any other. Another broad suggestion is to minimize expenses, as indicated by the Expense Ratio on each fund. There are some other studies saying that in the long run low-expense funds work as well as high-expense ones, so you might as well only bother with cheap funds. If you give some more information on your situation we could try to come up with some more concrete advice.