By Andrew LeckeyQ. I have been a shareholder of Snap-on Inc. and am rearranging my portfolio. Is it worth keeping?A. There’s more to this company that was founded in 1920 than just a traveling van emblazoned with its name and loaded with tools.A pioneer in interchangeable sockets and wrench handles that “snap on,” the company offers products and services in more than 150 countries. Franchisees operate more than 3,000 vans in the US that regularly visit vehicle service technicians and shopowners.Its tools, equipment, diagnostics and repair information are sold primarily to independent vehicle repair centers, as well as new vehicle dealerships and a variety of other industries.This leading premium supplier of professional tools expects much of its growth to be in the developing world where the motor services industry is expanding. About two-fifths of revenues came from outside the US last year.Shares of Snap-on Inc. (SNA) are down 14 percent this year following last year’s 34 percent gain. It is in solid financial shape with workable debt and substantial cash.Concerns for investors are the company’s significant production in Europe, where labour and consumer markets can be demanding; rising steel prices affecting manufacturing costs; and increasing fuel costs taking a toll on its franchisees. It has experienced a decline in number of franchisees in recent years due to previous overexpansion.The consensus analyst rating on shares of Snap-on and their reduced price is “buy,” according to Thomson Reuters, consisting of three “strong buys” and two “buys.”Its high-margin diagnostics and information business benefits from the transition to increased computerization in vehicles. It also manufactures more of the tools that it sells than its competitors do, assuring quality control. Nicholas Pinchuk, CEO since 2007 and chairman as well since 2009, has worked to keep the company lean while reducing franchisee turnover.In the 2011 survey of service mechanics conducted by Frost & Sullivan, Snap-on was the top selection in hand tools, tool storage, scan tools, power tools and pneumatic tools. The 2011 annual Global Franchises Report ranked Snap-on sixth among 5,000 global franchises evaluated by the Franchise Direct research firm.Snap-on earnings are expected to increase 34 percent this year compared to a 30 percent gain predicted for the tools and accessories industry. Next year’s forecast is for a 14 percent rise versus a 22 percent increase projected industry-wide. The five-year annualised return is expected to be 10 percent compared to the 15 percent increase expected for its peers.Q. I have concerns about future inflation and have heard about Principal Diversified Real Asset Fund. Is it a worthwhile choice?A. Finding inflation hedges is popular these days even though inflation remains low.This fund, designed to both outsmart inflation and avoid a correlation to stock and bond markets, is comprised of five baskets of assets. It was launched in March of last year as investors grew increasingly wary of the debt issues weighing down much of the world.The $725 million Principal Diversified Real Asset Fund “C” (PRDCX) is up .25 percent over the past 12 months to rank at the midpoint of moderate allocation funds.“I would not put more than five to 10 percent of an individual’s portfolio in a fund like this because it is a hedge, best used in moderation,” said David Kathman, mutual fund analyst with Morningstar Inc in Chicago. “We have it in our moderate allocation category because we don’t have a ‘real asset’ category for it, which means you can’t look at relative returns and judge it like other funds.”