MH Elite Portfolio of Funds Trust offers four no-load mutual funds designed to give investors an easy and efficient way to invest in the stock and bond markets. By implementing the fund of funds concept, all four Funds provide instant diversification and a well balanced portfolio for each investment strategy described below.
MH Elite Small Cap Fund of Funds
MH Elite Small Cap Fund of Funds will emphasize funds that invest in companies whose median market capitalization is less than 2.5 billion, at the time of initial purchase, commonly referred to as small and/or micro cap funds.
While small company stocks are subject to greater volatility than stocks found in the other asset categories, MH Elite Small Cap Fund of Funds, with its holdings diversified among 10 to 25 underlying funds, provides the small and micro cap investor the opportunity to reduce the risks associated with investing in a single fund or investment style. Unlike the majority of fund of funds, with their assets diversified across many different asset classes, MH Elite Small Cap Fund of Funds is unique in that it chooses to invest only in funds that concentrate their holdings in small and micro cap stocks.
MH Elite Fund of Funds
MH Elite Fund of Funds focuses on funds that invest in companies whose median market capitalization is greater than 2.5 billion, at the time of initial purchase, commonly referred to as mid and large cap funds.
MH Elite Fund of Funds, by investing in 10 to 25 mid and large cap funds, complements the holdings you will find in MH Elite Small Cap Fund of Funds. MH Elite Fund of Funds will generally invest approximately 70% of its assets in large cap funds and 30% of its assets in mid cap funds. We believe and recognize that diversifying your investment(s) among the different asset classes is at the cornerstone of a well designed investment plan. Separate asset classes may perform well at different times and under different market conditions. Large cap stocks outperformed small cap stocks for 5 consecutive years from 1994 thru 1998 while small cap stocks were the better performing asset class from 2000 thru 2004. In 2007 large cap stocks reemerged as the better performing asset class when compared against the performance of small cap stocks. Coming out of the 2008 recession small cap stocks had been the better performing asset class. As market leadership will often rotate between the asset classes, investors are best served by investing in a diversified mix of funds representing all the major asset classes.
MH Elite Select Portfolio of Funds
MH Elite Select Portfolio of Funds will provide investors the opportunity to invest in a broadly diversified mix of asset classes. The diversification of asset classes beyond the traditional U.S. equity markets as represented by MH Elite Small Cap Fund of Funds and MH Elite Fund of Funds will help to reduce a portfolio’s overall volatility.
MH Elite Select Portfolio of Funds will attempt to manage risk and volatility by using asset classes that may have a low correlation to the U.S. stock market including, but not limited to, funds that invest in international markets, emerging markets, natural resources, precious metals, real estate and commodities with their propensity to be a hedge against inflation. In addition, MH Elite Select Portfolio of Funds may invest in long/short and/or short only funds that employ hedging techniques that do not involve investing in equity securities to help reduce risk. The underlying funds may also employ other hedging strategies including investing in futures, options and short selling. Using different hedging techniques is intended to assist the Fund in its desire to capture market performance and to reduce the effects of market volatility.
MH Elite Income Fund of Funds
MH Elite Income Fund of Funds will primarily invest in a diversified mix of bond funds. The Fund will attempt to manage risk and market volatility by investing in a wide range of income funds including funds that invest in U.S. treasury securities, corporate bonds, bank debt, mortgage backed securities, inflation indexed securities, debt securities of foreign government and corporate issuers, convertible bonds, high yield/junk bonds and emerging market debt. The credit quality of the bonds purchased by the underlying funds will range from unrated junk bonds to investment grade. The underlying funds will also invest in bonds of various maturities.
Other sources of income may include investing in funds that invest in dividend paying common stocks and conservative allocation funds that invest in a combination of stocks and bonds.
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