Quote:
Originally Posted by Muncle
Hey, Boomer, Caroline, or anybody else, do you know anything about a new Third Avenue Mutual Fund, Focused Credit Fund Investor Class
(TFCVX). I don't know diddly, but 3rd Avenue's been fairly good and I was just wondering.
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You rang, Munc? You rang.
First of all, just a minute, while I insert my little disclaimer right here.
Disclaimer: Boomer is not a financial adviser in any professional way, shape, or form. Boomer has no alphabet designations behind her name that say she can give professional advice about money. Boomer is a mere bumpkin, living in Cincinnati, world headquarters for the Boomerfund which she has under management. (Boomer will be returning to TV for further recon for a possible second home there.) The Boomerfund has only one investor, besides Boomer herself. That one investor is Mr. Boomer. (He still likes her.) There have been rumors around these parts (TOTV) that Boomer may actually be an English major.
OK, Munc, I just had to make sure everybody knows that I have no idea what I am talking about. So now, back to your question.
When I am asked a question about money (and that actually happens to me in real life, too, once in a while) I have a policy that I never tell anybody what they
should buy. I just try to help them see some things that they need to figure out before they decide for themselves.
I looked up the fund you asked about. I just took a quick glance and did not find the description or history of the fund or the top holdings. That does not mean that info was not there. I did not click around much because I immediately saw a couple of things that I could start with, in the question department.
It does say that the fund is a no-load. A no-load fund still has associated costs to the investor, even though it does not exactly have a commission built in. If I am looking at the correct fund (please tell me if I am not) I see an expense ratio of 1.40%. That looks like one honkin' expense ratio to me. How do they convince you that they are worth it? Ask yourself that question and the answer will tell you a lot.
The other thing I see is that redemption fee of 2% if you want to exchange or redeem shares held less than one year. You can get in, but you can't get out, during that time period, not without it costing you a chunk of the investment. Ask yourself if you are willing to marry that fund for a year or if you do and then find that you don't want to hang around that long, are you willing to pay some serious alimony?
(Well, Munc, I have some more to say, but I am going to send this part for now. I will be back later. I rarely compose in "Word" for posts and I will probably lose this post if I do not hit "submit" soon. Not composing in "Word" before pasting long posts to TOTV is about the extent of my walking on the wild side. So that should indicate the kind of investor I am. -- at this point in my life anyway.)
Seeya later for Part II.
Boomer