1.   Alliance is the third fund group to pull Orange Country securities from fund portfolios, according to Fund Action, a newsletter published in New York.

2.   Although most international fund portfolios have a heavy weighting in Japan, he has avoided it, and said he would continue to do so.

3.   Another problem with large fund portfolios is duplication.

4.   A reason is that the fund portfolio does not follow the course of the overall market as closely as others do, King said.

5.   Advisers can use fund supermarkets and brokerage-firm wrap accounts to assemble fund portfolios from many companies without incurring transaction fees.

6.   All five participating managers continue to recommend diversified fund portfolios, even though diversification was a far from optimal strategy during much of the last seven years.

7.   Both projections assume that you use other funds to pay the taxes generated by the fund portfolio.

8.   But in general, a fund of funds is a very costly way to build a fund portfolio.

9.   Concentration inside individual fund portfolios has also had an impact on companywide performances.

10.   I suggest you take one of two approaches to getting income from the fund portfolio.