Update of the Kiplinger 25 Funds

Each year we examine scores of mutual funds from head to toe to identify the 25 best funds available. Check back here every month for news, views and updates about our recommended funds.

November 20, 2006

KIPLINGER 25 UPDATES:

Read about the 25 BEST MUTUAL FUNDS.

You can't always judge a fund by the index it competes with. Despite trailing Standard & Poor's 500-stock index by three percentage points over the past year, T. Rowe Price Growth Stock deserves credit for a job well done. It has topped 90% of its rivals -- funds that invest in large companies with above-average growth.

Savvy stock selection is one reason manager Bob Smith swept most of the competition. Much of his success flows directly from his strategy: He buys only stocks when he thinks they're reasonably priced. Smith, who has been at the fund's helm for nearly a decade, seeks firms with solid management teams and plenty of free cash flow. He also looks abroad for bargains, a strategy that has helped boost the fund's returns. "While international, as a whole, has done well, our international stocks have done even better," says Smith. The fund's 15% stake in foreign companies includes Latin American cell phone giant America Movil (symbol AMX) and Swiss financial firm UBS (UBS).

Smith made a number of smart technology bets in the past year. During the brief May-June stock-market correction, he loaded up on Adobe (ADBE) and Apple Computer (AAPL). Both stocks have since registered double-digit gains. Winners in other sectors include American Express (AXP); department-store chain Kohl's (KSS); and gaming company Wynn Resorts (WYNN).

The fund, which currently contains 120 stocks, has a turnover rate of 36%, meaning Smith holds each stock about three years on average. The average turnover rate among funds that invest in large, fast-growing companies is 86%. No-load T. Rowe Price Growth Stock (PRGFX; 800-538-5660) charges 0.72% in annual expenses, far below the category average of 1.43%. The minimum to invest is $2,500.

Below, view returns and other information about the Kiplinger 25 funds. To read more about the funds, see The 25 Best Mutual Funds. And view our suggested portfolios. --Katy Marquardt

U.S. STOCK FUNDS

FUND NAME	SYMBOL	1 YR. TOTAL RETURN	3 YR. TOTAL RETURN (ANNUALIZED)	5 YR TOTAL RETURN (ANNUALIZED)	10 YR TOTAL RETURN (ANNUALIZED)	EXPENSE RATIO	TOLL-FREE NUMBER
Bridgeway Aggressive Investors 2	BRAIX	9.7%	14.8%	—	—	1.23%	800-661-3550
Bridgeway Small Cap Growth	BRSGX	5.5	—	—	—	0.88	800-661-3550
CGM Focus	CGMFX	12.4	20.7	19.3%	—	1.07	800-343-5678
Excelsior Value and Restructuring	UMBIX	15.3	17.3	11.9	13.9%	1.14	800-446-1012
Legg Mason Opportunity Primary*	LMOPX	10.9	12.8	13.9	—	1.89	800-822-5544
Marsico Growth	MGRIX	5.0	9.8	7.4	—	1.26	888-860-8686
Masters' Select Equity	MSEFX	10.4	11.2	7.9	—	1.22	800-656-8864
Muhlenkamp	MUHLX	3.4	13.3	12.0	13.3	1.14	800-860-3863
Oakmark Select	OAKLX	16.5	11.0	8.6	17.9	1.00	800-625-6275
T. Rowe Price Equity Income	PRFDX	18.2	14.9	9.4	10.1	0.71	800-638-5660
T. Rowe Price Growth Stock	PRGFX	12.7	12.3	6.4	9.2	0.72	800-638-5660
T. Rowe Price Real Estate	TRREX	34.8	28.8	24.9	—	0.85	800-638-5660
RS Value**	RSVAX	16.1	21.0	24.0	6.2	1.49	800-766-3863
Selected American Shares S	SLASX	14.7	14.2	9.1	11.2	0.92	800-243-1575
Vanguard Primecap Core	VPCCX	14.9	—	—	—	0.72	800-662-2739
Vanguard Selected Value	VASVX	21.0	20.1	15.0	10.7	0.51	800-662-2739

Data is to November 20. --Not available. *Limited or no availability through discount brokers.
**Began charging sales commissions in October. Source: Copyright © 2006, Standard & Poor's, a division of The McGraw Hill Companies, Inc. All rights reserved.

INTERNATIONAL FUNDS

FUND NAME	SYMBOL	1 YR. TOTAL RETURN	3 YR. TOTAL RETURN (ANNUALIZED)	5 YR TOTAL RETURN (ANNUALIZED)	10 YR TOTAL RETURN (ANNUALIZED)	EXPENSE RATIO	TOLL-FREE NUMBER
Dodge & Cox International Stock	DODFX	27.3%	27.0%	20.1%	—	0.70	800-621-3979
Marsico International Opportunities	MIOFX	26.9	21.1	17.4	—	1.49	888-860-8686
Oakmark International 1*	OAKIX	29.5	22.6	17.9	12.3%	1.11	800-625-6275
SSgA Emerging Markets	SSEMX	32.2	32.0	27.3	10.7	1.25	800-647-7327

Data is to November 20. --Not available. *Limited or no availability through discount brokers. Source: Copyright © 2006, Standard & Poor's, a division of The McGraw Hill Companies, Inc. All rights reserved.

BOND FUNDS

FUND NAME	SYMBOL	1 YR. TOTAL RETURN	3 YR. TOTAL RETURN (ANNUALIZED)	5 YR TOTAL RETURN (ANNUALIZED)	10 YR TOTAL RETURN (ANNUALIZED)	EXPENSE RATIO	TOLL-FREE NUMBER
Dodge & Cox Income	DODIX	5.5%	3.8%	5.5%	6.4%	0.44%	800-621-3979
Fidelity Floating Rate High Income	FFRHX	5.9	4.8	—	—	0.82	800-544-8544
Fidelity Intermediate Municipal Income	FLTMX	4.7	3.6	4.6	5.2	0.43	800-544-8544
Harbor Bond Institutional	HABDX	4.7	4.1	5.6	6.6	0.58	800-422-1050
Loomis Sayles Bond	LSBRX	12.1	9.9	13.4	9.4++	1.00	800-633-3330

Data is to November 20. --Not available. ++For the older, institutional class, which has a higher minimum investment and lower operating expenses. Source: Copyright © 2006, Standard & Poor's, a division of The McGraw Hill Companies, Inc. All rights reserved.