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Fund Watch

Kiplinger 25 Model Portfolios

Reach your investment goals with these plans using our favorite no-load mutual funds.

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We've constructed three portfolios using only funds from the Kiplinger 25, our list of our favorite no-load mutual funds, designed for investors with different goals, time horizons and levels of risk tolerance. (See Kiplinger's 25 Favorite Funds for the complete list of funds with their performances.) If you find them too aggressive, cut back each basket's allocation to stocks by up to ten percentage points. If you're bullish on stocks and don't lose sleep when the market turns hostile, cut back on your allocation to bond funds and hold more in stock funds.

See Also Our Complete Guide to the Kiplinger 25

For Retirement: 11+ years away

With growth as the primary goal, this portfolio holds 85% in stock funds, with one bond fund (Pimco Income D) for a touch of ballast.

Primecap Odyssey Growth (POGRX ): 20%
Vanguard Equity-Income (VEIPX): 20%
Parnassus Mid Cap (PARMX): 15%
Pimco Income D (PONDX): 15%
T. Rowe Price Small-Cap Value (PRSVX): 15%
FMI International (FMIJX): 10%
T. Rowe Price International Discovery (PRIDX): 5%

For College: 6-10 years away

This package is ideal for building up a tuition fund for a kid with Ivy League stars in his eyes. Or you can use it for other goals — say, an approaching retirement in a decade (or a bit sooner). With that shorter time frame, more bond funds (35%) are in the mix.

Vanguard Equity-Income (VEIPX ): 20%
FMI International (FMIJX): 15%
Homestead Small-Company Stock (HSCSX): 15%
Metropolitan West Total Return Bond M (MWTRX): 15%
Pimco Income D (PONDX): 15%
Primecap Odyssey Growth (POGRX ): 15%
Vanguard High Yield Corporate (VWEHX): 5%

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For Income: Five Years or less

Designed for conservative investors, this package holds 70% of its assets in bond funds. It yields 3.3%.

DoubleLine Total Return Bond (DLTNX): 20%
Pimco Income D (PONDX): 20%
T. Rowe Price Dividend Growth (PRDGX): 15%
Vanguard Equity-Income (VEIPX): 15%
Fidelity New Markets Income (FNMIX): 10%
Vanguard High Yield Corporate (VWEHX): 10%
Vanguard Short-Term Investment Grade (VFSTX): 10%