Update of the Kiplinger 25 Funds

April 9, 2007

KIPLINGER 25 UPDATES:

Every year we examine scores of mutual funds from head to toe to identify the 25 best funds available. Below we offer up-to-date commentary on selected funds, plus key data on all 25 funds. Check back here every month for news, views and updates.

Marsico Growth has lagged over the past year: The fund returned just 4% in the year through April 4, trailing Standard & Poor's 500-stock index by eight percentage points. Manager Tom Marsico notes that large-company growth funds have generally performed poorly for six years. But he thinks the tide is finally turning. "I even see a number of value managers buying growth stocks, because the values are attractive," he says.

Marsico says most of the stocks in his fund are "core growth" companies such as United Health, Lowe's, Toyota and Burlington Northern. He describes this category as composed of durable businesses for which he can predict earnings two to four years out with a high degree of confidence.

A second category is "aggressive growth." Here, Denver-based Marsico looks for outfits, such as biotech companies and casino operators, that are capable of expanding much faster than the overall economy.

Yet a third group is "life-cycle change" companies, which are typically corporations that are undergoing a significant change in operations, such as an acquisition or restructuring. Marsico puts Lockheed Martin, an aerospace and defense business, in the change camp.

To read more about Marsico Growth and our other favorite no-loads, see the 2006 edition of The 25 Best Mutual Funds. And view our suggested portfolios. --Andrew Tanzer

US 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	1.53%	14.73%	8.61%	—	1.23%	800-661-3550
Bridgeway Small-Cap Growth	BRSGX	-1.56	11.61	—	—	0.88	800-661-3550
CGM Focus	CGMFX	14.36	19.75	11.43	—	1.07	800-343-5678
Excelsior Value & Restructuring	UMBIX	11.85	14.28	8.35	14.37	1.14	800-446-1012
Legg Mason Opportunity Primary*	LMOPX	8.36	11.13	6.55	—	1.89	800-822-5544
Marsico Growth	MGRIX	4.17	8.47	5.01	—	1.26	888-860-8686
Masters' Select Equity	MSEFX	6.40	7.95	4.71	10.45	1.22	800-656-8864
Muhlenkamp	MUHLX	-1.92	8.71	5.14	12.72	1.14	800-860-3863
Oakmark Select	OAKLX	9.25	7.91	4.68	16.48	1.00	800-625-6275
T. Rowe Price Equity Income	PRFDX	14.93	12.38	7.26	10.19	0.71	800-638-5660
T. Rowe Price Growth Stock	PRGFX	11.50	9.88	5.82	9.53	0.72	800-638-5660
T. Rowe Price Real Estate	TRREX	25.92	25.72	14.74	—	0.85	800-638-5660
RS Value**	RSVAX	18.71	18.87	10.94	7.28	1.49	800-766-3863
Selected American Shares S	SLASX	12.70	11.21	6.59	11.11	0.92	800-243-1575
Vanguard Primecap Core	VPCCX	8.32	—	—	—	0.72	800-662-2739
Vanguard Selected Value	VASVX	21.34	16.29	9.49	11.13	0.51	800-662-2739

Data is to April 5.
—Not available.
*Limited or no availability through discount brokers.
**Began charging sales commissions in October.
Source: Morningstar, Inc.

International 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
Dodge & Cox International Stock	DODFX	22.48%	24.52%	14.08%	—	0.70%	800-621-3979
Marsico International Opportunities	MIOFX	12.84	17.42	10.12	—	1.49	888-860-8686
Oakmark International I*	OAKIX	24.42	21.67	12.50	12.27	1.11	800-625-6275
SSgA Emerging Markets	SSEMX	19.57	29.36	16.72	10.90	1.25	800-647-7327

Data is to April 5.
—Not available.
*Limited or no availability through discount brokers.
Source: Morningstar, Inc.

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	6.73%	3.75%	2.24%	6.76%	0.44%	800-621-3979
Fidelity Floating Rate High Income	FFRHX	6.43	5.24	3.12	—	0.82	800-544-8544
Fidelity Intermediate Municipal Income	FLTMX	4.61	3.43	2.05	5.24	0.43	800-544-8544
Harbor Bond Institutional	HABDX	5.94	4.00	2.38	6.88	0.58	800-422-1050
Loomis Sayles Bond	LSBRX	10.26	8.85	5.23	9.67	1.00	800-633-3330

Data is to April 5.
—Not available.
Source: Morningstar, Inc.