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Fund Watch

Kiplinger 25 Model Portfolios

Reach your investment goals with these plans using our favorite no-load mutual funds.

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We've constructed three portfolios using only funds from the Kiplinger 25, our list of our favorite no-load mutual funds, designed for investors with different goals, time horizons and levels of risk tolerance. (See Kiplinger's 25 Favorite Funds for the complete list of funds with their performances.) If you find them too aggressive, cut back each basket's allocation to stocks by up to ten percentage points. If you're bullish on stocks and don't lose sleep when the market turns hostile, cut back on your allocation to bond funds and hold more in stock funds.

See Also Our Complete Guide to the Kiplinger 25

For Retirement: 11+ years away

With growth as the primary goal, this portfolio holds 85% in stock funds, with one bond fund (Fidelity Strategic Income) for a touch of ballast.

Dodge & Cox Stock (DODGX): 20%
Primecap Odyssey Growth (POGRX ): 20%
Parnassus Mid Cap (PARMX): 15%
Fidelity Strategic Income (FSICX): 15%
Baron Emerging Markets (BEXFX): 10%
Fidelity International Growth (FIGFX): 10%
Oakmark International (OAKIX): 10%

For College: 6-10 years away

This package is ideal for building up a tuition fund for a kid with Ivy League stars in his eyes. Or you can use it for other goals — say, an approaching retirement in a decade (or a bit sooner). With that shorter time frame, more bond funds (35%) are in the mix.

Vanguard Equity-Income (VEIPX ): 20%
DoubleLine Total Return Bond (FMIJX): 15%
Metropolitan West Total Return Bond M (MWTRX): 15%
Oakmark International (OAKIX): 15%
Primecap Odyssey Growth (POGRX ): 15%
T. Rowe Price QM U.S. Small-Cap Growth Equity Fund (PRDSX): 15%
Vanguard High Yield Corporate (VWEHX): 5%

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For Income: Five Years or less

Short time frames require more caution. This package holds 70% of its assets in bond funds. It yields 3.1%.

DoubleLine Total Return Bond (DLTNX): 25%
Fidelity Strategic Income (FSICX): 15%
T. Rowe Price Dividend Growth (PRDGX): 15%
Vanguard Equity-Income (VEIPX): 15%
Vanguard Short-Term Investment Grade (VFSTX): 15%
Fidelity New Markets Income (FNMIX): 10%
Vanguard High Yield Corporate (VWEHX): 5%