FIRST-TIME USER'S GUIDE
Welcome to the Dynamic Growth Letter. In order to help you get started with the newsletter, I've listed answers to questions that new subscribers often ask. If you have any additional questions, please feel free to send me an e-mail.
What is the first thing I should do?
- Open a Brokerage Account that allows you to buy Fidelity no-load funds, or charges you low commissions, or accepts wrap accounts (fee in lieu of commissions).
- Before you start buying, you have to ask yourself: What is your risk tolerance level? Are you comfortable owning a smaller, more volatile portfolio? (Top 10 Funds), or do you prefer owning a more diverse strategy? (Top 15 Funds).
What fund strategy do I choose?
You can choose one or both investment strategies;
A) Fidelity Select Sector Fund Portfolio: If you choose to invest in our Fidelity Select Sector Funds, You need to open a brokerage account with Fidelity, or a discount broker who will not charge you a transaction cost to buy or sell Fidelity Select Funds.
Fidelity sector funds are available for brokerage as well as retirement accounts. The minimum investment required to invest in each sector fund is $2,500.
Fidelity does not charge a fee to buy or sell a Fidelity Select Sector Fund as long as the fund is held for at least 30 days.
B) (ETF) Exchange Traded Fund Portfolio: ETF's can be bought or sold through any broker/ dealer, but keep in mind you will be charged a commission for the transaction.
Naturally, a discount broker will charge you substantially less than a wire house, so if you do not have a wrap fee agreement (fee in lieu of commissions) with your broker, you may want to open an account with the discount broker of your choice.
Once again, be sure that you equal weight, or put the same dollar amount into every fund you purchase.
I just read your newsletter for the first time: What funds should I buy first?
We highly recommend that you equal weight, or put the same dollar amount into every fund you purchase. This allows for better diversification and keeps from overweighting too heavily in one sector.
- Aggressive investors should buy the Top 10 funds each month- If a fund falls out of the Top 10 the following month; replace it with the newest addition to the Top 10.
** Please note: If you are using the Top 10 strategy, and one of your funds falls out of the Top 10, can continue holding it as long as the fund does not do not fall out of the Top 15
- Growth Investors should buy the Top 15 funds each month- If a fund falls out of the Top 15 the following month; sell the fund and replace it with the newest addition to the Top 15.
** Please note: If you are using the Top 15 strategy, and one of your funds fall out of the Top 15, the fund needs to be sold to make room for the next fund choice.
How do I keep up track of any portfolio changes that may take place?
I've tried to make our Dynamic Growth system as easy-to-use as possible. Since our newsletter is a continuous service, I will post updates weekly under the Newsletter section of the website.
Simply click on Newsletter, put in your username and password, and you can view my weekly updates and comments.
Simply click on Newsletter, put in your username and password, and you can view my weekly updates and comments
How often will the portfolio change?
- If there are any changes to be made, we will only make changes to the no-load Fidelity Sector Funds at the beginning of each month.
Many fund families charge a trading or redemption fees on funds held less than 30 days. We do not find it cost effective nor necessary to trade professional managed mutual funds as often as we would non-managed funds like ETF's.
** Please keep track of the date you purchased each Fidelity Sector Fund to make sure that you are beyond the 30 day holding period.
- The Exchange Traded Fund Portfolio (ETF), on the other hand, can change weekly.
Since ETF's trade like stocks, and can be bought or sold on any day the market is open, we can trade these funds as often as we choose.
If there are any changes to the holdings in the portfolio, we will alert you of those changes each and every week.
What is the difference between the information in the Newsletter section of the service, and the Journal portion?
The Newsletter section is for subscribers only, which includes our top portfolio picks, investment ideas, and in-depth analysis on the financial markets.
The Journal section is a general commentary on recent events affecting the markets. We will not provide any specific investment ideas, portfolios, or advice in the journal.
Will Dynamic Growth recommend individual stocks?
We do have plans to incorporate a Top 15 stock portfolio in the months ahead. Stay Tuned!
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