Polliesdividend

Recent buy (Dutch Mutual Fund)

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.

Cheers,

Pollie

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6 thoughts on “Recent buy (Dutch Mutual Fund)

  1. Dividend Diplomats

    Nice pickup Pollie! I don’t have a safe haven fund, but I always consider JNJ as my go to stock when in need. I do have mutual fund exposure through my 401k so I don’t ever feel the need to buy into a fund outside of that exposure since a portion of my paycheck is invested every two weeks.

    Bert

  2. Dividend Life

    Hi Pollie,
    Most of my Income Fund is in mutual funds – I think they give “good enough” performance and I like their simplicity. They can be a good way to diversify a percentage of your portfolio as long as the fees are low.

    Best wishes,
    -DL

    1. Polliesdividend Post author

      Hello DL,

      Thanks for stopping by and taking the time to write a comment!

      mutual funds are great and yes their simplicity is top!. They offer a good way to diversify a percentage of your portfolio.
      I agree completely!
      Do you have well known mutual funds?

      Cheers,

      Pollie

      1. Dividend Life

        I own VHDYX and VIHAX from Vanguard – both are High-Yield Dividend funds with low expenses; the first is US stocks and the second is International (non-US) stocks. I aim for a 2:1 ratio between them, so two-thirds in US and one-third international.
        Best wishes,
        -DL

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