In edited excerpts from his original article* Joshua M. Brown (www.TheReformedBroker.com) maintains that when a fund brochure says:
1. Ultra
It really means: Leveraged to the hilt.
2. Global growth
It really means: We’ll chase stocks for you in whichever country is most overheated right now.
3. Clean/green
It really means: A basket of government-subsidized experiments and some GE shares.
4. Deep value
It really means: We will invest in sewing machine and typewriter companies.
5. Socially responsible
It really means: No such thing – all corporations are evil.
6. Diversified
It really means: We will basically buy the index and go golfing.
7. Enhanced
It really means: Uses exotic derivatives you’ve never heard of.
8. Aggressive growth
It really means: Collection of Chinese gaming stocks and New Jersey biotech startups.
9. Moderate allocation
It really means: Gutless fund manager.
10. Opportunities
It really means: We will throw darts.
11. Core
It really means: No need to spread it out: send us everything you have.
*http://www.thereformedbroker.com/2009/12/14/decoding-fund-brochures/
Editor’s Note:
– The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
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