Fund Overviews
MH Elite Portfolio of Funds, Inc. offers three no-load mutual funds designed to give investors an easy and efficient way to invest in the stock market. By implementing the fund of funds concept, all three Funds provide diversification and a well balanced portfolio for each investment strategy described below. All Funds, with an investment objective of long term capital appreciation, will invest in a mix of fund styles including value, blend and growth funds.
MH Elite Small Cap Fund of Funds
MH Elite Small Cap Fund of Funds will emphasize funds that invest in companies whose median market capitalization is less than two billion, at the time of initial purchase, commonly referred to as small and/or micro cap funds.
While small company stocks are subject to greater volatility than stocks found in the other asset categories, MH Elite Small Cap Fund of Funds, with its holdings diversified among 10 to 25 underlying funds, provides the small and micro cap investor the opportunity to reduce the risks associated with investing in a single fund or investment style. Unlike the majority of fund of funds, with their assets diversified across many different asset classes, MH Elite Small Cap Fund of Funds is unique in that it chooses to invest only in the small and micro sectors of the economy. As of May 2009, MH Elite Small Cap Fund of Funds 10 year average annual return was ranked #53 (top 12%) out of 466 fund of funds with at least a 10 year history as tracked by Morningstar. Morningstar currently covers 3458 mutual funds within the fund of funds category.
MH Elite Fund of Funds
MH Elite Fund of Funds focuses on funds that invest in companies whose median market capitalization is greater than two billion, at the time of initial purchase, commonly referred to as mid and large cap funds.
MH Elite Fund of Funds, by investing in 10 to 25 mid and large cap funds, complements the holdings you will find in MH Elite Small Cap Fund of Funds. MH Elite Fund of Funds will generally invest approximately 75% of its assets in large cap funds and 25% of its assets in mid cap funds. We believe and recognize that diversifying your investment among the different asset classes is at the cornerstone of a well designed investment plan. Separate asset classes may perform well at different times and under different market conditions. Large cap stocks outperformed small cap stocks for 5 consecutive years from 1994 thru 1998 while small cap stocks were the better performing asset class from 2000 thru 2004. In 2007 large cap stocks reemerged as the better performing asset class when compared against the performance of small cap stocks.
MH Elite Select Portfolio of Funds
MH Elite Select Portfolio of Funds will provide investors the opportunity to invest in a broadly diversified mix of asset classes. The diversification of asset classes beyond the traditional
MH Elite Select Portfolio of Funds will attempt to manage risk and volatility by using asset classes that are generally considered alternative investments to the U.S. equities market including, but not limited to, funds and exchange traded funds that invest in international markets, emerging markets, natural resources, precious metals, real estate, rising or falling interest rate trends and commodities with their propensity to be a hedge against inflation. In addition, MH Elite Select Portfolio of Funds may invest in long/short and/or short only funds that employ hedging techniques that do not involve investing in equity securities to help reduce risk. The underlying funds may also employ other hedging strategies including investing in futures, options and short selling. Using different hedging techniques is intended to assist the Fund in its desire to capture market performance and to reduce the effects of market volatility.
The funds offered by MH Elite Portfolio of Funds are available to U.S. investors only and may not be available in all states. To determine if these Funds are an appropriate investment for you, carefully consider the Fund's investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Fund's prospectus which may be obtained by clicking here or by calling 1-800-318-7969. Please read the prospectus carefully before investing. Mutual fund investing involves risk, including the possible loss of principal.