We have found that, when it comes to investing, the simplest solution is often the best solution. While the inherent diversification of mutual funds offers significant advantages to some investors, the complexity of funds' investment strategies and the opacity of the actual investment vehicle can cause confusion and undue focus on returns.

This bottom line orientation often leads to excessive movement of assets when patience would have produced a better result.It is often easier to hold a position in a stock or bond with which the investor is familiar with than a fund that is essentially just a name and a quarterly return.