If you are looking for equity diversification, I would consider MOFQX. I am not certain why I have never recommended it. It really wasn’t until this weekend that it dawned on me that I should be doing so. MOFQX is unusual in the mutual fund industry. It gets weird ratings because it does not put its money in any specific sector or market capitalization or even country, through American Depository Receipts at the NYSE. It isn’t a growth fund, it isn’t an income fund it isn’t a value fund.
As far as I can tell, it is the only fund that is an any cap fund, any style fund, anything fund. It invests by seeking only those investments that can reasonably be expected to do above average on a consistent basis regardless of what category Morningstar, Lipper or Kiplinger’s put them in. The goal is to make the customer money, not fit inside a marketing category. They keep getting quoted in Barron’s, Forbes, Fortune, CNN and so forth.
However, because they go where the money is, and that keeps moving, it means their ratings are all over the board because no one can figure out where they should be classified.
In my own portfolio, I do the same thing. Six months ago, nearly my entire portfolio was in NYSE stocks because that is where the money was. Lately it has been drifting toward great financials and other beaten up companies.
For any debt portion of your IRA, I would consider splitting out your IRA into two parts because the best debt instruments right now are at banks not corporate bonds. Going to www.bankrate.com and putting some of your money in the highest yielding CD’s will, either laddering them with 1yr,2yr,3yr,4yr and 5yr cds or only buying one specific period of cds will get you more than any bond mutual fund or any specific investment grade bond unless you buy far out into the future. Given inflation expectations, that probably is not prudent.
So, for equity, MOFQX is really great. I personally suspect that it will be the "Fidelity Magellan" of the next ten years, although back when Fidelity Magellan was the best fund not now. I say this because their system is the only still out there trying to do things because they make sense, not because they can be sold readily by a broker.
For debt, love the banks, the bond market isn’t competitive right now because banks are seeking liquidity and want your money badly, all of them are like that, but some will pay more than others. FDIC insurance and yields above governments and yields above corporates….what is not to like?