I had a friend ask me today if  I could give my opinion on a Mutual Fund.  It was raining, so I had time to do the research.  They sent me the link to the fund, and I got started.  Just about every Fund prospectus will give you a ton of information.  Where they invest, how much cash they hold, and, for evaluation purposes, the major companies in the portfolio.

Here is my research: (Based on Nov 25 2025 About 11:30 AM)

Alphabet (GOOG):  In oversold territory (overpriced), at 6 month YTD high today, but Higher than the Oct inception date of the Fund. $319.20

Nvidia (NVDA): Moving lower today, and Lower than the Oct inception date of the Fund.  $174.29

BroadCom (AVGO): Moving up, at 6 month YTD high today, Higher than the Oct inception date of the Fund. $377.19

Microsoft (MSFT): Moving up today, Lower than the Oct inception date of the Fund. $473.90

Bank of America (BAC): Moving up today, Higher than the Oct inception date of the Fund. $52.54

Apple (AAPL):  At 6 month YTD high today, Higher than the Oct inception date of the Fund. $278.73

Applied Materials (AMAT): At 6 month YTD high today, Higher than the Oct inception date of the Fund. $236.24

Cisco Systems (CSCO): Just off 6 month YTD high, Higher than the Oct inception date of the Fund. $76.20

Advanced Micro Devices (AMD): Dropping today, Higher than the Oct inception date of the Fund. $199.47

Gilead Sciences Inc. (GILD): just off YTD high, Higher than the Oct inception date of the Fund. $126.96

The fund, in my opinion, is trying to cash in on the AI craze.  I think they might have gotten in too late. Even though they should be up because most of the stocks are higher than at the inception date. You make money when you buy LOW and sell HIGH. (LOL).

There is talk that AI is a bubble and it may burst soon. If that happens, this Fund could go down well over 25%.  The only 2 companies not in AI are Bank of America, and Gilead Sciences.  Even they will go down if the AI bubble bursts.

My recommendation to a client would be wait for 6-8 months and see what happens.  All of these stocks that were bought, at inception (Oct 2025)  were at their highest at that time. After 6-8 months we should know if the bull market will continue for AI or if it bursts.  If the Bull continues to run the fund should go up.  And you will curse me for telling you to wait.  If it goes down I look pretty smart.

What this really shows is, that if an ordinary person wants exposure to these stocks, Mutual Funds or an ETF are the way to go. If you wanted to buy 100 shares of each (board lot) then it would cost you $231,072.00 plus trade costs.  That would be a pretty big chunk of money for most people. Even if you only bought 10 shares of each it cost over $23,000.00.  Now these 10 stocks only make up about 30% of the Fund.  If things go badly, the other holdings might help cushion the drop.  That is another benefit of a Mutual Fund.

Even though your money would be spread over 10 stocks, this in my mind, would not qualify as a diversified portfolio.  Most of these stocks are in the AI area or related to AI. That is another benefit to Mutual Funds, they do diversify the risk.  I didn’t have access to all the stocks in the Fund, so hard to comment on diversification.  Another advantage to Mutual Funds is that you can get into this Fund for a minimum $500.00 investment.  You can also set up Auto Deposits into this Fund for as little as $25.00.  I would always suggest regular contributions as this allows for dollar cost averaging and regular investing at the same time.

What if the Fund Drops? DON’T PANIC!! You only really loose money if you sell at a loss.  These are companies that will not fold just because their share price drops for a while.  The market goes up and down.  If they drop, I would put $50.00 a month in.  Buy LOW and sell HIGH. You will get more units for the same money and when they go back up, which they will, you will make more money.

BUYING AFTER A LOSS IS TOTALLY CONTRATARY TO HUMAN NATURE.  Even a Mutual Fund company can not sell a stock unless there is someone to buy it.  When you panic and sell at a loss, and someone buys your stock, you have to ask yourself, who and why would anyone buy this??  The answer is simple.  A SMART INVESTOR WHO IS GOING TO MAKE MONEY.