Need to dump Pimco bond fund....here are my choices.

[Chessie]

I have a very small portion (2.5k) of my deferrred comp plan sitting in a PIMCO Total Return Bond fund (PTRAX). This is the second time I have moved this little bit of money into a different Bond fund, and both have turned out to be duds. It's not a lot of money, I know, but darn it I hate seeing my money just wither down to nothing. This was a recommended fund when I moved this money into it, as was the last one, and both have turned to crap. I have absolutely no skills at investing, clearly, so I thought I would ask here. These are my investment choices. RIght now, all new contributions are going into a fixed fund. But my old balances can sit in any of these. Baron is where I moved out of, and it sucked, so please don't suggest that one. Appreciate any advice you can provide!!


William Blair International Growth N
Eagle Small Cap Growth R5
Perkins Mid Cap Value A
Vanguard Mid Cap Index Inv
American Funds Growth Fund of Amer R4
MFS Massachusetts Investors Growth Fund
Vanguard Institutional Index Fund
Vanguard Total Bond Market Index Inv
Baron Small Cap Retail
Heartland Value Fund
Morgan Stanley Inst Mid Cap Growth I
American Century Equity Growth Fund
Janus Forty Class S
Franklin Mutual Shares Fund
PIMCO Total Return Fund - Admin
Wells Fargo Advantage Gov't Sec - Inv

[Petunia 100]

I have a very small portion (2.5k) of my deferrred comp plan sitting in a PIMCO Total Return Bond fund (PTRAX). This is the second time I have moved this little bit of money into a different Bond fund, and both have turned out to be duds. It's not a lot of money, I know, but darn it I hate seeing my money just wither down to nothing. This was a recommended fund when I moved this money into it, as was the last one, and both have turned to crap. I have absolutely no skills at investing, clearly, so I thought I would ask here. These are my investment choices. RIght now, all new contributions are going into a fixed fund. But my old balances can sit in any of these. Baron is where I moved out of, and it sucked, so please don't suggest that one. Appreciate any advice you can provide!!


William Blair International Growth N
Eagle Small Cap Growth R5
Perkins Mid Cap Value A
Vanguard Mid Cap Index Inv
American Funds Growth Fund of Amer R4
MFS Massachusetts Investors Growth Fund
Vanguard Institutional Index Fund
Vanguard Total Bond Market Index Inv
Baron Small Cap Retail
Heartland Value Fund
Morgan Stanley Inst Mid Cap Growth I
American Century Equity Growth Fund
Janus Forty Class S
Franklin Mutual Shares Fund
PIMCO Total Return Fund - Admin
Wells Fargo Advantage Gov't Sec - Inv

Easy call. Vanguard Total Bond Market Index, Investor Shares. Paying high fees for your bond fund(s) makes even less sense than paying high fees for your stock fund(s).

Edit: What is your asset allocation plan?

[c3troop]

I vote vanguard institutional index with the.02% er. Unless you're looking just at bonds in which case I agree vanguard total bond.

[smk]

I have absolutely no skills at investing, clearly, so I thought I would ask here

you are in extremely good company. research shows the largest pension funds spend all their time chasing the best returning funds. but when they buy them they turn into duds. so when they go to sell them to buy the next "stellar performer," it turns out the duds they sold become the stellar performers and their hope for the next great fund turns out to be the next dud. this has been going on for decades. I think the moral of the story is don't pay for active management - keep your fees low.

[feh]

PTRAX is an excellent bond fund. If your asset allocation calls for some money in bonds, I suggest you leave it there.

Don't let a fund's performance over a 6 week period influence your choices. If seeing the value fluctuate drives you crazy, don't monitor it so closely.

[Chessie]

you are in extremely good company. research shows the largest pension funds spend all their time chasing the best returning funds. but when they buy them they turn into duds. so when they go to sell them to buy the next "stellar performer," it turns out the duds they sold become the stellar performers and their hope for the next great fund turns out to be the next dud. this has been going on for decades. I think the moral of the story is don't pay for active management - keep your fees low.

Actually I have not had that experience with my other choices...only bond funds. I split this little bit out, years ago, because all the "experts" say you should invest in a bond fund, so I thought I would try it. Clearly, bond funds are someone else's game.

I don't "chase returns".

[Chessie]

PTRAX is an excellent bond fund. If your asset allocation calls for some money in bonds, I suggest you leave it there.

Don't let a fund's performance over a 6 week period influence your choices. If seeing the value fluctuate drives you crazy, don't monitor it so closely.

6 weeks? No, certainly I would not do anything because of a 6-week return...I'm not THAT clueless. No, this is at least a year or so, I think. And it is rated lower now, in fact it is on several "dump this fund" lists.

[Chessie]

Easy call. Vanguard Total Bond Market Index, Investor Shares. Paying high fees for your bond fund(s) makes even less sense than paying high fees for your stock fund(s).


Edit: What is your asset allocation plan?

I don't have one.

[Chessie]

I vote vanguard institutional index with the.02% er. Unless you're looking just at bonds in which case I agree vanguard total bond.

I have almost 50% of my old balance (before I starting putting contributions into a fixed-return fund) in that Vanguard fund. So yes, just looking at bond funds for this little piece.

[Chessie]

Easy call. Vanguard Total Bond Market Index, Investor Shares. Paying high fees for your bond fund(s) makes even less sense than paying high fees for your stock fund(s).

Thanks!

[feh]

6 weeks? No, certainly I would not do anything because of a 6-week return...I'm not THAT clueless. No, this is at least a year or so, I think. And it is rated lower now, in fact it is on several "dump this fund" lists.

Ignore the "dump this fund" lists. Those are put together by people looking to sell advertising. The Jim Cramer types are not your friends.

Please tell us how long this money will be invested. Assuming it's for retirement, and you aren't close to retirement, I reiterate my advice to keep the fund in your portfolio.

I also suggest you do some reading on investing basics, and create an asset allocation appropriate for your risk tolerance. It's a bad sign if you're looking to sell your bond holdings right now; you don't want to be one of those people that sells low and buys high due to emotions. For an investing horizon that isn't short term, you want interest rates to increase, which means the NAV of the fund will decrease. As long as you aren't selling the fund, that is not a problem.

[jori]

I think Vanguard Total Bond Market Index Inv is the best option in the list. I would go with this option if I'm new to investment

[Petunia 100]

I don't have one.

Well, you need one.

Do some reading and decide on a reasonable asset allocation plan for yourself. Then, choose funds to "flesh out" your plan.