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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: RFH who wrote (7141)	3/24/1999 1:49:00 PM
From: OldAIMGuy	Read Replies (1) \| Respond to of 18928

Hi Rob, That's the bane of most mutual funds. Yes it's frustrating, but AIM always makes up for our small differences in price vs AIM directed market orders. It does so by adjusting our next buy and sell price ever so slightly. So, if we end up selling too little or too much because of the day's closing price, AIM'll adjust the next order accordingly. Remember, the program doesn't know the price was higher/lower the day before! It's our secret. The graph will still look great! The main difference between owning one stock vs a mutual is that there's greater risk, and therefore a need for greater cash being reserved. I've never penciled out the difference between a stock that grows at 10% per year and is 50% invested (average) vs a fund that grows at 8%/year and is 67% invested, but you can see where this leads! An individual stock has to perform enough better than the mutual fund to justify the shift in Cash/Equity ratio. Best regards, Tom