As you dear readers already know, a part of my Vrijheid Fonds consists of mutual funds. I haven’t paid much attention at this part of my portfolio. I was focusing on individual stocks.
Last year I only made one change in this part of my portfolio. Last weekend I did some math and Pollie-magic again 😉 and looked at the return on investment for the remaining mutual funds. The dividend yield of one of my mutual funds (Robeco) was too low. And it wasn’t compensated by capital gain either. So on the basis of this math I sold all my shares of Robeco. This is the oldest mutual fund in The Netherlands, and my first fund I ever bought. So I was a little bit sentimental and I took a little bit longer then usual to push the sell button.
In total I had shares in this fund for almost two decades. When I sold this fund I had a gain of almost 100%. So Robeco has been good for Pollie 😉
The next day I had money for some new buys, duh!
I decided to buy other mutual funds. I want a part of my Vrijheid Fonds to consist of mutual funds. These must be funds that will give me some nice yield and have a low beta. My little “save part” of my Vrijheid Fonds. This gives me a secure feeling. And that’s why I bought new mutual funds again.
With the money I did two new purchases.
The first has a dividend yield of approx. 5% and is a bond fund. It is primary invested in government bonds and corporate bonds (with an AAA till BBB rating). About 85% of this mutual fund is invested in bonds. It’s a 5 star mutual fund at www.Morningstar.nl
The second mutual fund has a dividend yield of approx. 7%. It is primary invested in well-established European companies with a proven dividend series. It’s a 3 star mutual fund at www.Morningstar.nl
As you can see, both funds are high yield. And furthermore they are well known (in the Netherlands) and established mutual funds.
With the sell I lost a projected dividend of € 106. The two new buys are good for approx.
€ 340. So the net gained projected dividend for 2016 for my mutual funds is € 234!
What a nice step in my journey.