Mutual Funds

Suggested Portfolios Using Kip 25 Funds

Below, we combine selected Kiplinger 25 funds into portfolios to help you meet your goals -- whether you're looking forward to retirement decades down the road or just around the corner, or you're saving for another goal, such as your child's college education.

These portfolios are designed for investors with different time horizons. If you find them too aggressive for your taste, trim each package's allotment to stocks by ten percentage points. Also, if you're investing in a taxable account, substitute Fidelity Intermediate Municipal Income for one or more of the taxable bond funds.

Updated April 2010

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Data through December 31, 2011

Long-term: 11+ years away

The past decade has been an exception, but stocks tend to produce handsome gains over extended periods of time. This portfolio holds 80% in stocks, 15% in bonds, and 5% in a fund that tracks commodity prices.

FUND NAME	SYMBOL	% OF PORTFOLIO	1-YR RETURN	3-YR RETURN	5-YR RETURN	10-YR RETURN	REDEMPTION FEE	EXPENSE RATIO
Dodge & Cox Intl Stock	DODFX	20%	-15.97%	12.1%	-3.45%	7.99%	none%	0.65%
Dodge & Cox Stock	DODGX	15	-4.08	12.63	-4.1	4.03	none	0.52
Fidelity Contrafund	FCNTX	15	-0.12	14.7	2.58	6.96	none	0.91
Harbor Bond Institutional	HABDX	10	3.48	8.34	7.39	6.46	none	0.53
Pimco CommodityRealRet Strat D	PCRDX	5	-8.09	16.5	1.88	—	none	1.24
T. Rowe Price Small-Cap Value	PRSVX	10	-0.6	16.46	2.41	9.14	1.00r	0.83
T. Rowe Price Mid-Cap Growth	RPMGX	5	-1.21	22.54	5.48	7.52	none	0.8
Vanguard Dividend Growth NEW	VDIGX	15	9.43	14.07	3.4	4.97	none	0.34
Vanguard Infl-Protected Secs	VIPSX	5	13.24	10.03	7.63	7.33	none	0.22

r Maximum redemption fee charged when you sell shares. — Fund has not existed for the specified time. Source: Morningstar, Inc..

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Data through December 31, 2011

Mid-term: 6 to 10 years away

Now that your savings goal is coming into sight, you should start to reduce your portfolio's risk level. This basket does so by raising the bond allocation to 35% and reducing the weighting in stocks to 65%

FUND NAME	SYMBOL	% OF PORTFOLIO	1-YR RETURN	3-YR RETURN	5-YR RETURN	10-YR RETURN	REDEMPTION FEE	EXPENSE RATIO
Dodge & Cox Intl Stock	DODFX	15%	-15.97%	12.1%	-3.45%	7.99%	none%	0.65%
Dodge & Cox Stock	DODGX	15	-4.08	12.63	-4.1	4.03	none	0.52
Fidelity Contrafund	FCNTX	15	-0.12	14.7	2.58	6.96	none	0.91
Harbor Bond Institutional	HABDX	20	3.48	8.34	7.39	6.46	none	0.53
Loomis Sayles Bond	LSBRX	10	3.48	17.06	6.22	9.71	none	0.92
T. Rowe Price Small-Cap Value	PRSVX	5	-0.6	16.46	2.41	9.14	1.00r	0.83
Vanguard Dividend Growth NEW	VDIGX	15	9.43	14.07	3.4	4.97	none	0.34
Vanguard Infl-Protected Secs	VIPSX	5	13.24	10.03	7.63	7.33	none	0.22

r Maximum redemption fee charged when you sell shares. — Fund has not existed for the specified time. Source: Morningstar, Inc..

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Data through December 31, 2011

Short-term: 3 to 5 years away

Because stock markets are unpredictable, you should reduce risk substantially if you're going to need cash in just a few years. This portfolio lifts the allotment to bonds to 50% and adds a 5% position in a low-volatility merger-arbitrage fund.

FUND NAME	SYMBOL	% OF PORTFOLIO	1-YR RETURN	3-YR RETURN	5-YR RETURN	10-YR RETURN	REDEMPTION FEE	EXPENSE RATIO
Arbitrage Fund R NEW	ARBFX	5%	4.5%	5.27%	4.43%	5.2%	2.00%r	1.52%
Dodge & Cox Intl Stock	DODFX	10	-15.97	12.1	-3.45	7.99	none	0.65
Dodge & Cox Stock	DODGX	10	-4.08	12.63	-4.1	4.03	none	0.52
Fidelity Contrafund	FCNTX	10	-0.12	14.7	2.58	6.96	none	0.91
Harbor Bond Institutional	HABDX	25	3.48	8.34	7.39	6.46	none	0.53
T. Rowe Price Small-Cap Value	PRSVX	5	-0.6	16.46	2.41	9.14	1.00r	0.83
Vanguard Dividend Growth NEW	VDIGX	10	9.43	14.07	3.4	4.97	none	0.34
Vanguard Short-term Investment-Grade NEW	VFSTX	25	1.93	6.93	4.28	4.01	none	0.22

r Maximum redemption fee charged when you sell shares. — Fund has not existed for the specified time. Source: Morningstar, Inc..