Successful fund investing doesn't stop with choosing the best funds. The next step is equally vital -- combining the funds into a rational investment plan.
It's also important to diversify your portfolio. Different kinds of stocks -- those of large companies versus small companies, rapidly growing companies versus undervalued companies, foreign versus U.S. -- take turns leading (and lagging) the markets. The performance divergences are unpredictable and often enormous.
| Row 0 - Cell 0 | The 25 best mutual funds |
| Row 1 - Cell 0 | How our 2005 picks performed |
| Row 2 - Cell 0 | What's in, what's out since last year |
| Row 3 - Cell 0 | When a fund's size matters |
Over the long term, different types of stock funds tend to produce roughly similar results, although small-company stocks perform better (and are also riskier). The reason for owning some of each category is to smooth your portfolio's ups and downs.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
How should you divvy up your stock money? Roughly 50% belongs in large-company funds, split between funds that invest in growing companies and funds that invest in bargain-priced ones. Put 25% in foreign funds, and divide the final 25% among small-company funds that invest in growth companies and value stocks. But you may have to make adjustments, as we do in our suggested portfolios, for funds that buy different kinds of stocks.
Go to suggested portfolios for 2006 >>
-
Best Banks for High-Net-Worth Clientswealth management Kiplinger's 2023 list of the best banks for higher-net-worth clients.
-
Stock Market Holidays in 2024: NYSE, NASDAQ and Wall Street HolidaysMarkets When are the stock market holidays? Take a look at which days the NYSE, Nasdaq and bond markets are off in 2024.
-
Stock Market Trading Hours: What Time Is the Stock Market Open Today?Markets When does the market open? It's true the stock market does have regular hours, but trading doesn't necessarily stop when the major exchanges close.
-
Bogleheads Stay the CourseBears and market volatility don’t scare these die-hard Vanguard investors.
-
I-Bond Rate Is 5.27% for Next Six MonthsInvesting for Income I-Bonds issued November 1, 2023 through April 30, 2024 will have a rate of 5.27%.
-
What Are I-Bonds?savings bonds Inflation has made Series I savings bonds enormously popular with risk-averse investors. So how do they work?
-
This New Sustainable ETF’s Pitch? Give Back Profits.investing Newday’s ETF partners with UNICEF and other groups.
-
As the Market Falls, New Retirees Need a Planretirement If you’re in the early stages of your retirement, you’re likely in a rough spot watching your portfolio shrink. We have some strategies to make the best of things.
