WHAT IS THE SMI FUND UPGRADING STRATEGY?
In Upgrading, we rank over a thousand mutual funds by type each month, and determine which ones have been performing the best recently. We hold the top funds in each category until they stop outperforming, then replace them with other funds showing stronger recent performance. Upgrading works because, as economic conditions change, market leadership rotates among companies of different sizes, and among different investment approaches. While market conditions are constantly changing, fund managers rarely do. Managers that excel under one set of market conditions often are only average (or worse) under a different set of conditions. Rather than buy a fund and hold it through both the periods that favor the manager’s approach and the periods that don’t, Upgrading continually guides us to funds that are in favor right now. Visit the Fund Upgrading page for an overview of the Upgrading process.
