As frequent readers of my blog already know, a part of my Vrijheid Fonds consists of mutual funds. These must be funds that will give me some nice yield, have a low beta and have low costs (TER). I call it my little “safe-haven-to-sleep-well” of my Vrijheid Fonds. This gives me a secure feeling. And that’s why I buy mutual funds.
My “safe-haven-to-sleep-well” consists of a bond fund (5 stars on Morningstar) and dividend fund (3 stars on Morningstar). These well-established mutual funds are from the same very respectable company (Nationale Nederlanden Group). These funds perform well for me, so no complains here ;-). Every quarter they pay me dividend, which I reinvest. And that is what I like as a DGI.
Lately I’m have been thinking about my “safe-haven-to-sleep-well”. Especially after reading the book: How to retire early by Robert and Robin Charlton. Funds only from one fund-house can be a little bit risky. Therefore to make my “safe-haven-to-sleep-well” a bit more future proof, I need to diversify in fund-houses.
After my decision for more diversification, I did some data mining on Morningstar. I found a few funds I like. Index funds from the well-known Vanguard and a dividend fund from the Dutch fund-house Kempen & Co, a specialist merchant bank and asset manager.
So I have to make a decision which mutual fund to buy first. After a good glass of German Beer (yes I love it, especially Paulaner Hefe Weissbier Dunkel), I decide to buy Kempen European High Dividend Fund. This mutual fund has a yield of approx. 5% and a TER of 0.78%. This fund has a 3 star rating on Morningstar
Today (June, 28) I bought 16.5008 shares.
With this buy I added a little bit more than €2.38 (after taxes) of dividend to my Vrijheid Fonds for this year. So my snowball can start rolling on this fund.
The projected dividend income for 2016 for my Vrijheid Fonds is €2,472
Again a small step in my journey, and one-step closer to my goal.
Does anyone else have a little safe-haven in his/her portfolio? And do you own Mutual funds? I like to hear from you.