MP 63 FUND

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The MP63 (DRIPX) Fact Sheet

4th Quarter

As of December 31, 2018

The MP63 (DRIPX) is a diversified mutual Fund that allows individual investors to put money into a wide range of companies that offer Dividend Reinvestment Plans, in a simple, low-cost, low-beta, low-turnover portfolio of high-quality dividend paying stocks, carefully selected by experienced managers.

Portfolio and Strategy:

The Fund focuses on companies (in a wide range of industries) with strong brands and competitive advantages, with long histories of paying and increasing dividends, that also have the likelihood of continuing to pay and increase dividends in the future. MP63 is the only mutual Fund focused on companies that offer Dividend Reinvestment Plans (DRIPs), and it is managed by two experts on the field of DRIPs, each with more than 20 years of experience.

  1. The process of portfolio selection pays special attention to defensive stocks (companies with products and services we all need, regardless of the economic cycles).

  2. In a semi-passive approach, the Fund invests in 63 companies for the long or very long term. The Fund invests cash and reinvests the dividends in the companies that pay them on a routine basis over the year. In this way, the Fund benefits from market volatility by following a dollar-cost averaging approach—buying fewer shares at high prices and more shares when the market price is lower.

  3. The annual turnover ratio is about 2%, which is relatively low compared with funds in its category.

  4. By requiring no minimum initial investment and accepting subsequent investments of any amount--regardless of how small--the Fund facilitates the use of dollar-cost averaging by small investors who wish to acquire Fund shares over a long period of time.

  5. The Fund discourages trading by imposing a redemption fee on shares that are held for less than six months.

  6. The two Fund managers have substantial investments in the Fund.

Costs and Fees:

The Fund has a no-load structure, so it is available directly to investors, with no brokers or commissions. However, should shareholders wish to hold shares within a brokerage account, the Fund appears on the Charles Schwab platform. Those brokers charge their own fees.

The Expense Ratio is competitive compared to its category. According to Morningstar®, as of December 31st, 2018, the average expense ratio of mutual Funds in the Large-Cap Value category is 1.01%, while the expense ratio of DRIPX is 0.75%.

The Fund doesn’t charge a 12b-1 fee (a fee associated with promotion or advertising).

Small and Beautiful:

Currently (as of December 31st, 2018) DRIPX is part of the group of 61 small funds defined by Morningstar as “Small and Beautiful”. The funds in that list have in common:

- They manage less than $500M in assets

- Have a distinct portfolio

- Have an expense ratio below 1%

- A minimum initial purchase less than $10,000

- 5 years returns in the top 50% of the category

- Manager tenure longer than 5 years

- Less than 33% of the portfolio in cash

Solid cumulative returns compared to its category:

As of December 31st, 2018, DRIPX has a 4-star rating from Morningstar® and the Gold medal, which is their highest analyst rating for mutual funds. As of December 31st, 2018, this is how the Fund’s cumulative returns compare to its category (Large Cap Value Funds):

  • Since the Fund’s inception in 1999: DRIPX, 217.16%. Large Cap Value Category, 182.74%.

  • During the past 15 years: DRIPX, 182.38%. Category, 143.61%

  • During the past 10 years: DRIPX, 201.42%. Category, 170.97%.

  • During the past 5 years: DRIPX, 40.32%. Category, 28.50%.

  • During the past 3 years: DRIPX, 28.67%. Category, 21.61%.

  • During the past 12 months: DRIPX, (-5.54%). Category, (-8.55%).

These are trailing returns, which are returns that DRIPX and the Category have achieved over the specified time including both capital gains and dividends.

The comparison in a chart:

The following chart compares cumulative returns, as of December 31st, 2018 (including dividends and capital gains), since the Fund inception in March 1st, 1999. The cumulative return comparison is as follows:

1: The Fund (MP 63 Fund, DRIPX) (blue line): 217.16%

2: The Fund category (large cap value) (orange line): 182.74%

3: The S&P 500® index (green line): 195.66%

Source: Morningstar (as of December 31, 2018)

Any performance data quoted represents past performance. Past performance is not indicative of future returns. No representation or warranty is made that any returns indicated will be achieved.

Volatility and Investment Risks:

DRIPX’s 3-year trailing Beta is 0.89 (vs. the S&P 500® Index), so the Fund is 11% less volatile than the S&P Index®.

(Note: Beta is a measure of the volatility, or systematic risk, of a mutual Fund, a security or a portfolio in comparison to the market as a whole.)

Dividend Growth:

DRIPX annual dividends per share since inception in 1999:

    1999: 06 cents

    2004: 09 cents

    2009: 22 cents

    2014: 29 cents

    2000: 08 cents 2005: 13 cents 2010: 20 cents 2015: 34 cents
    2001: 06 cents 2006: 17 cents

    2011: 24 cents

    2016: 38 cents

    2002: 07 cents 2007: 19 cents 2012: 32 cents 2017: 36 cents

    2003: 07 cents

    2008: 21 cents

    2013: 27 cents

    2018: 41 cents

Investing in the Fund:

  • The Fund is available directly. There is no required minimum initial investment. Also, there is no requirement to invest a certain minimum amount for subsequent investments. The Fund offers an optional Automatic Investment Plan.

  • Rollover/transfer from old/existing 401k or retirement plan: The Fund accepts rollover or transfer from old or existing 401k or retirement accounts (Traditional or Roth IRAs). For that purpose investors can contact the Fund by phone at the number shown above or use the Investment Forms provided at the Fund’s Website.

  • The Fund’s Website is as follows: www.MP63FUND.com or www.DRIPX.com. To obtain the prospectus and Fund information, including the 63 companies that make up the Fund, visit the website or call 1-877-676-3386.

  • The Fund is also available through discount brokerage firms Charles Schwab. These discount broker charges its own fees.

General Risks

You could lose money investing in the Fund. When you sell Fund shares, they may be worth less than what you paid for them because the value of Fund investments vary from day-to-day,

Risks of Investing in Common Stocks Individual companies may not perform as anticipated, stock markets may experience periods of turbulence and instability, and domestic and global economies are subject to periods of decline and cyclical change.

Large-Size Company Risks Larger companies may be unable to respond quickly to new competitive challenges and may be unable to attain the high growth rates of successful, smaller companies.

Mid-Size Company Risks Medium-sized companies may be more volatile because they may not have the management experience, financial resources, product diversification and competitive strengths of larger companies.

Focused Portfolio Risks Any negative changes inheret to companies that offer dividend reinvestment plans might result in a greater negative impact to the Fund than a Fund that holds a larger array of securities.

Any performance data quoted represents past performance. Past performance is not indicative of future returns. No representation or warranty is made that any returns indicated will be achieved. Mutual Fund investing in general involves market risk, fees, and expenses, which should be considered carefully before investing. 

MP 63 Fund is managed by Moneypaper Advisor, Inc., Harrison, New York, 10528 and is distributed by Arbor Court Capital, LLC - Member FINRA. Important information about the MP 63 Fund (DRIPX) is found in its prospectus, a copy of which, along with current performance information, may be obtained by visiting MP63Fund.com or by calling 877-676-3386 to speak with the fund Administrator or 800-388-9993 to speak with the Advisor. Prospective investors should read the prospectus carefully before investing.

Fund holdings are subject to change and are not a recommendation to buy or sell any security.

© Copyright 2019 MP 63 Fund, Inc.  All rights reserved.

The opinions reflected above are subject to change are not investment advice and any forecasts made cannot be guaranteed. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.

Dollar-cost averaging does not assure a profit and does not protect against a loss in declining markets. A dollar-cost averaging strategy involves continuous investment in securities regardless of fluctuations in price levels of such securities. You should consider your financial ability to continue purchases through periods of high and low price levels. The MP 63 Fund does not strictly follow a dollar-cost averaging strategy because the investments it makes are controlled by the investment amounts it receives from its shareholders.

Please read the MP 63 Fund prospectus before you invest or send money. If you have any questions, please call shareholder services toll-free at 1-877-MP63FUN (1-877-676-3386) or Vita Nelson or Mario Medina 800-388-9993.

Investment products are not FDIC insured, offer no bank guarantee and may lose value. 

The MP 63 Fund is offered only to United States residents, and information on this site is intended only for such persons. Nothing on this Website should be considered a solicitation to buy or an offer to sell shares of the Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.