Kiplinger 25 Investment Portfolio: Short-Term (3-5 Years Away)

Investment portfolio updated April 2014

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.

 
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Kiplinger 25 Investment Portfolio: Short-Term (3-5 Years Away)


 15% Stocks |  75% Bonds |  10% Alternative | 


 Data through August 31, 2016

FUND NAME SYMBOL % OF
PORTFOLIO
YTD
RETURN
1-YR
RETURN
3-YR
RETURN
5-YR
RETURN
10-YR
RETURN
20-YR
RETURN
EXPENSE RATIO
BondDoubleLine Total Return Bond NDLTNX15%3.4%3.65%4.28%4.37%—%0.000.72%
StockDodge & Cox International Stock**DODFX54.71-0.992.685.612.850.000.64
StockFidelity New Markets IncomeFNMIX515.8914.947.546.67.8210.660.84
BondFidelity Total BondFTBFX107.96.944.94.055.340.000.45
StockMatthews Asian Growth & Income InvMACSX59.1310.182.914.76.799.961.09
AlternativeMerger FundMERFX101.371.251.42.242.594.841.34
BondMetropolitan West Unconstrained Bond MMWCRX103.022.922.880.001.04
BondOsterweis Strategic IncomeOSTIX157.784.633.485.086.170.000.82
BondVanguard Dividend Growth Inv**VDIGX257.6814.3411.6313.958.767.680.33
   1006.327.155.656.394.78 0.71
** Closed to new investors. # Closed to new investors; other share classes are available.
r Maximum redemption fee charged when you sell shares. s Front-end load; redemption fee may apply.
— Fund has not existed for the specified time. Source: Morningstar, Inc..

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.