Is asset allocation reports accurate?

I invest mainly in mutual funds. Is the asset allocation report accurate? I want to know if I can rely on it to set my investment allocations. I'd also like to know where does it get the info from?
Thanks
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Dave:
As far as the limited categories go, yes, it is accurate. No small caps, no growth vs. value vs. blend. No distinction of bond length. Every now and then, a trade would not be reflected in my allocation. Cutting the transaction, and then pasting it back seems to make Quicken H&B 2006 realize it's missing a trade.
Bob
I invest mainly in mutual funds. Is the asset allocation report accurate? I want to know if I can rely on it to set my investment allocations. I'd also like to know where does it get the info from? Thanks
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Dave:
No MID caps.
Bob
I invest mainly in mutual funds. Is the asset allocation report accurate? I want to know if I can rely on it to set my investment allocations. I'd also like to know where does it get the info from? Thanks
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Mutual fund asset allocations are, ultimately, from the fund companies OR in a couple of cases, from entities like Morningstar.
The funds provide asset allocations AS OF a certain point in time (usually, something like 2x per year). But most funds have some degree of drift in their allocations. So what was true 3 months ago, may not be EXACTLY true today. One easy example of this is if a fund accumulates cash, and then invests it. I've seen the Cash alloc vary by 10-15% from semi-annual report to the next.
That's were Morningstar and others come in. They "estimate" the allocation of funds based upon actual performance.
But, on top of all that, the definition of the various classes isn't carved in stone ... it can vary to some degree from fund to fund ... AND you've got the previously noted limitations in the allocation names used by Q.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

BeanSmart.com is a site by and for consumers of financial services and advice. We are not affiliated with any of the banks, financial services or software manufacturers discussed here. All logos and trade names are the property of their respective owners.

Tax and financial advice you come across on this site is freely given by your peers and professionals on their own time and out of the kindness of their hearts. We can guarantee neither accuracy of such advice nor its applicability for your situation. Simply put, you are fully responsible for the results of using information from this site in real life situations.