August 2006 Score Card — Part III: Asset Allocation

Morningstar instant X-ray shows that for our mutual fund portfolio, more than 52% are in US stocks as of August. Another big chunk is foreign stocks, which counts more 38%. The foreign stock part has got a little bigger than what I desire 30%, and the growth mainly came from investments in Dodge & Com International Stock (DODFX), which is the largest holding in the portfolio and has an accumulative gain of 72% since we purchased it three years ago. Some asset allocation suggests 20% in foreign stocks, which is much lower than our current holding. The reason I decide to go with a larger piece of foreign stocks is to catch the repaid growth of developing economies, as well as the steady growth of other meatured markets such as Frence, UK, and Japan.

I sold our only bond mutual fund early this year, but kept the I-Bond and continue to add every month. Now all our bond mutual funds are in tax sheltered accounts.

If you enjoyed reading this post, please consider subscribing to my full RSS feed (What's RSS feed?). Or you can also choose to have free daily updates delivered right to your inbox.

Featured Financial Products

• Seeking higher returns for your cash? Take a look at the latest interest rates from leading online banks and find out where to get the most for your money.
• Earn up to 5% cash back from these cash back credit cards while shopping at gas stations, grocery stores, or online.

Related Articles You Don't Want To Miss

• March 2007 Score Card — Part II: Asset Allocation
• July 2007 Score Card — Part II: Expenses
• September 2006 Score Card — Part IV: Asset Allocation
• August 2006 Score Card — Part II: Networth
• April 2007 Score Card — Part II: Year-To-Date Returns