TITLE

FOLLOW THE WINNER: PERIODIC INVESTING STRATEGIES

AUTHOR(S)
Zwirlein, Thomas J.; Reddy, Venkateshwar K.; Doyle, Barry
PUB. DATE
October 1995
SOURCE
Journal of Financial Planning;Oct95, Vol. 8 Issue 4, p160
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This paper addresses the question of whether the periodic method of allocating money in a portfolio across various funds has any effect on wealth accumulation. A popular, passive method of periodic investment buys shares of a mutual fund at regular intervals. We devise several alternative allocation techniques and compare them with this simple strategy. Our alternative strategies periodically add dollars to the funds based upon prior performance. We find that a "follow-the-winner" strategy of investing in the fund(s) with higher prior-period performance results in a significant increase in wealth accumulation.
ACCESSION #
5560791

 

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