BOSTON (MarketWatch) Andy Gunter, mutual fund analyst for Morningstar Inc., says that investors must look past performance to consider factors ranging from costs and manager tenure to asset bloat and style drift in order to pick a fund they can believe in for the long-term future.
In an interview with Chuck Jaffe, MarketWatch senior columnist, Gunter said those considerations should lead you to sell Paradigm Value /zigman2/quotes/207227431/realtime PVFAX +0.18% despite strong recent performance and a good star rating. Gunter was concerned with high costs at the fund. Likewise, MainStay Small Cap Opportunities /zigman2/quotes/209171597/realtime MOPAX +0.32% is a sell for similar reasons; in the small-cap space, Gunter suggested replacing the two funds with Royce Special Equity /zigman2/quotes/207244410/realtime RYSEX 0.00% .
Noting that all index funds are not created equal, Gunter put a buy rating on Vanguard Total Bond Market /zigman2/quotes/206402661/realtime VBMFX -0.45% and suggested unloading Dreyfus Basic S&P 500 Stock Index /zigman2/quotes/209824086/realtime DSPIX +0.08% in favor of something with a better cost structure.
Also in the interview Gunter put buy tags on Franklin Income /zigman2/quotes/206821089/realtime FKINX 0.00% , Buffalo Small Cap /zigman2/quotes/206708770/realtime BUFSX -1.05% and Fidelity Mid Cap Stock /zigman2/quotes/202087663/realtime FMCSX -0.09% .
In another interview, Charles Rotblut, senior market analyst for Zacks.com, was bullish on TRW Automotive and bearish on Jabil Circuit /zigman2/quotes/203847835/composite JBL +1.09% .
Jaffe's radio interviews feature reviews of stocks and mutual funds suggested by MarketWatch readers. To request a stock or mutual fund for review, send your name, hometown and the ticker symbols that interest you to Chuck Jaffe .