[sb1]

While I totally agree with your concept, it's highly important to note that one should hold mutual funds in a tax free Roth or SEP, Simple or other tax deferred account. Holding them in a taxable account will generate taxable income each and every year, some with large capital gains, even though you have not sold a nickels worth. ETF's would be the better choice, same make up of companies or sectors, but much more tax efficient.