Obligatory: I am not a financial analyst.
As you mentioned, there is a hefty front-end, but if you can avoid it, more power to you, especially with its terrific expense ratio. It looks decent, According to the morningstar report:
The only thing that would make me hesitate to invest more in it is that its top ten holdings make up over 18% of its total holdings. I mean, it does appear to be fairly diverse amongst those ten, and of them it is investing in "best of breed" for the given sector, but a downturn in any of them could affect your selection. For example, Microsoft and Oracle are in the top ten, but if the tech industry took a hit again, you might too. Or if Altria gets hit with another tobacco settlement, etc. etc.
Great, that is very helpful. In comparison to an S&P index fund, ANCFX might be more volatile/risky in the case where these companies decline?
The five year record looks good, but remember that the five year window is close to making us forget about the dot-com era, and you never know when the tech sector, or any other, will get hit again.
OK, so this warning might apply to ANCFX moreso than an index fund?
It's a good fund... I'd say that whether or not you invest more in it depends on your investment horizon and how much risk you can afford. I'm not sure I would make it a core fund -- then again, I'm somewhat conservative in my investing -- but it's certainly a decent addition, IMO.
It's 401k, and I want to retire early, perhaps by 2035 when I am mid-50s, so perhaps I should be much more smart-risky than you? I'm planning on balancing my combined IRA-401k porfolio to something like:
45% DSPIX S&P Index fund
8% MMUFX (declining over time: no further buys due to front-end load)
8% Bond fund
NEVER AGAIN paying a front load
What do you think of this balance? Should more go into ANCFX than DSPIX? Less?
Another thing about me is that I don't want to spend hours and hours making this decision. (The good is the enemy of the perfect, right, JD?) A few forum posts, a few data sheets, then move on with life.
As a side note, then, what is the above retirement portfolio sorely missing?