The Value Line Fund Advisor
Investing Through Diversification and Control
Professional investors have long recognized that one of the keys to long-term success in the markets is diversification. This is where the strategic deployment of capital is carefully structured into a portfolio that spans a wide variety of asset classes, performance profiles and risk components. Diversification of investments helps contain risk by minimizing the negative impact that any single investment may have on overall performance. It also multiplies the potential opportunities for profit.
The Value Line Fund Advisor is a multifaceted investment management solution designed to help even nonprofessional investors find their way with confidence through this maze of investment choices, statistics, opinions and competing claims. In monthly printed reports and daily updated web content, the Fund Advisor provides comprehensive, reliable research on thousands of funds, plus versatile analytical tools, proven rankings, objective commentary, screens and other invaluable resources—all intelligently organized and easily accessible. Now, mutual fund investors can quickly and easily gain the perspective and insight they need to construct and manage a diversified portfolio that reflects their individual circumstances, age, income, time horizon, tolerance for risk—and appetite for profit.
The Fund Advisor encompasses several unique components, centered mainly within our encyclopedic database of more than 12,000 funds (20,000 for the PLUS Edition), including those with no purchase or redemption fees (“no load”). To help focus your personal investment style and strategy, we group these funds into six general categories (general equity, special equity, international equity, partial equity, taxable fixed income, tax-free fixed income), and 30 subgroups defined by investment objective (e.g., aggressive growth, foreign stock, corporate bonds), plus smaller peer groups when appropriate for accurate comparisons.
Our 48-page monthly hard copy Fund Advisor report contains a comprehensive, tabular index of more than 800 key funds grouped by category, with more than 24 specific data points and performance indicators for each fund. The performance index enables you to scrutinize “at a glance” every facet of fund performance over various time spans as far back as 10 years, and though bull and bear markets.
A central feature of each report, and of the entire Fund Advisor system, is the Value Line Asset-Allocation Model, which uses an investor profile questionnaire designed to guide your thinking about your investment objectives, life stages, and personal attitudes towards acceptable risk vs. expected rewards. The results will indicate your general orientation among nine types of investment strategies ranging from aggressive to conservative, and within short, medium and long time horizons. Using these models enables you to achieve “directed diversity”— an intelligently targeted diversification strategy, as opposed to a less-disciplined “scatter-shot” approach.
One of the most illuminating and easiest-to-use measures in the performance index, and throughout the Fund Advisor system, is Value Line’s exclusive Ranking System for both funds and fund managers. Overall Rank indicates risk-adjusted fund performance, and Risk Rank is the fund’s total level of risk. Managers are ranked for performance relative to peers. Similar to Value Line’s highly predictive rankings for stocks, our fund ranks from 1 to 5 have proven internally consistent and reliable year after year.
Each monthly report also features:
- Commentary on markets, the economy and industry sectors, as well as portfolio strategies, specially prepared by Value Line’s knowledgeable analysts and financial planners.
- A spotlight on two key funds within selected asset classes, with in-depth reports and analyst discussions.
- Updated recommendations for two model portfolios reflecting moderate risk/medium term and aggressive/medium term investor profiles.
- A focused “Short List” of updated fund recommendations for each of nine corresponding asset-allocation models, arranged by asset classes and risk levels, with room for customization.
- Screens focusing on the best- and worst-performing funds within each general fund category and risk level.
- A screened list of the highest ranked funds among the six general fund categories.
- Benchmark performance averages for various investment objective groups and time periods.
- Continuing advice on using the Fund Advisor and asset-allocation model to maximize your returns.
The Fund Advisor online experience features a newly redesigned user interface that connects you to a vast range of financial information and sophisticated analytical tools. Manipulate as many as 80 screening criteria to zero in on a targeted list of funds, or find specific funds by ticker or name. The main web page is a simple but powerful platform for launching search and screening functions. From here you can also access richly detailed reports on up to 20,000 funds, including portfolio holdings, rankings, management and performance statistics. Online-based price-related data is updated daily, while updated performance data appears in the 48-page monthly printed report. You can download and print fund reports, as well as past issues of the Fund Advisor and a series of valuable service and investing guides.
Aspart of your subscription, we've included three helpful guides with the advice and information needed to build a diversified portfolio of mutual funds. Not only will you find everything you need to know about the service in these guides, but you will also get Value Line's proprietary asset allocation questionnaire and model. This model corresponds to a list of top mutual fund selections that you will find in each issue written by Value Line's highly trained analysts. Using these vital tools, you can create and continually manage a portfolio that suits your needs. The complimentary guide books are:
- Value Line's Guide to Planning an Investment Strategy
- The Complete Overview of The Value Line Fund Advisor
- The In-depth Guide to Reading a Fund Advisor Report
Note that you can upgrade your subscription to include every fund in our database by subscribing to the Plus edition of The Value Line Fund Advisor. With this upgrade, you will receive all of the above, but will also have online access to our entire fund database with more than 20,000 funds, each with its own printable fact sheet and all searchable through the online fund screening tool.