Strategy Intermediate: Core vs. Noncore Investments

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1.
Which of the following would make the best core holding for most investors?
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A large-blend fund. Large-blend funds own large companies with middle-of-the-road stock prices, which makes them boring but ideal core choices. Large-value funds and large-growth funds can both be more volatile than large-blend funds at times.
2.
All investors should have the same size core holding.
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False. Though different investors and experts will disagree, there is no one size for everyone.
3.
Which is the quality of a great core holding?
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Its boring. Core holdings dont make great dinner-party chatter. They do, however, provide the steady returns that your portfolio needs to achieve your goals.
4.
How big should your core be, at the very least?
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Half of your portfolio. While your entire portfolio can be made up of core investments, it doesnt have to be. But holding just 25% of your portfolio in core holdings could lead to more thrills than your portfolio can stand.
5.
Why might large-growth funds not be the best choice for a core mutual fund?
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They have big price swings. Their big swings mean that they could suffer big losses too.