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This recommended investment portfolio is one of 20+ mutual fund portfolios that we've
assembled for investors with different time horizons and risk-tolerance levels to consider.
15% Stocks | 75% Bonds | 10% Alternative |
In years past, this portfolio has included Vanguard Short-Term Investment-Grade. This year, we replace Vanguard with Merger fund. We still like the Vanguard fund, but at best, it is likely to return only as much as its modest yield, currently 1.5%. We think Merger can deliver returns in the mid-single-digit percentages and, thanks to its unusual strategy, do so with little more volatility than the Vanguard fund. The rest of the portfolio is fairly predictable: 55% bonds, 35% traditional stocks. The fixed-income side includes two go-anywhere bond funds, Osterweis and Metropolitan West Unconstrained. They balance two more-sedate funds, Fidelity Total Bond and DoubleLine Total Return Bond.