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.
