Since we published our recommended fund portfolios ("The 25 Best Mutual Funds," May), readers have bombarded us with e-mails, all asking the same question: "How can I assemble these packages without having to deal with five to seven different companies?" The simplest answer: Open an account with an online brokerage. But you will have to pay commissions for funds that aren't part of a no-transaction-fee plan. Also, not every fund is available from every broker. Legg Mason Opportunity isn't available from any we checked except Siebert & Co.
We looked for the best buy for investors with $50,000 in assets and those with $500,000. Scottrade is cheapest for accounts of both sizes. On average, you'd pay $85 in commissions to construct each of the portfolios -- the firm offers all our recommended funds, except Opportunity and Fidelity Floating Rate High Income. HarrisDirect ranks second. It charges an average of $93 and offers all the funds except Opportunity. By comparison, Charles Schwab charges between $245 and $825 to assemble the portfolios, which are listed below.
| LONG TERM |
| 25% |
|
T. Rowe Price Growth Stock |
| 20% |
|
Oakmark Select |
| 25% |
|
Dodge & Cox International |
| 20% |
|
Masters' Select Smaller Cos. |
| 10% |
|
Legg Mason Opportunity |
|
| MEDIUM TERM |
| 20% |
|
T. Rowe Price Growth Stock |
| 15% |
|
Oakmark Select |
| 20% |
|
Dodge & Cox International |
| 15% |
|
Masters' Select Smaller Cos. |
| 10% |
|
T. Rowe Price Real Estate* |
| 10% |
|
Loomis Sayles Bond |
| 10% |
|
Harbor Bond** |
|
| SHORT TERM |
| 20% |
|
American Century Equity Income |
| 10% |
|
T. Rowe Price Growth Stock |
| 10% |
|
Dodge & Cox International |
| 10% |
|
Masters' Select Smaller Cos. |
| 10% |
|
T. Rowe Price Real Estate* |
| 10% |
|
Fidelity Floating Rate High Income |
| 30% |
|
Harbor Bond** |
|
*Replaces Third Avenue Real Estate, which is closed to new investors **In a taxable account, use Fidelity Spartan Intermediate Municipal Income instead.
