5 Great Funds for a Down Market

“Everyone has a plan until they get punched in the mouth.” Fearsome former heavyweight champ Mike Tyson wasn’t talking about investors when he dispensed that particular piece of wisdom.

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“Everyone has a plan until they get punched in the mouth.” Fearsome former heavyweight champ Mike Tyson wasn’t talking about investors when he dispensed that particular piece of wisdom. But with the walloping portfolios have taken in recent months, he might as well have been. The recent stock market plunge serves as a wake-up call (if not an uppercut to the jaw) for investors.

If major declines in your mutual funds have you reconsidering just how much of a beating you’re willing to take, consider adding a fund that holds up in difficult markets. From the 2007–09 bear market through today’s turmoil, Standard & Poor’s 500-stock index has had five downturns of 15% or more. And, with one exception, the large-company stock funds below held up better than the index on every occasion (Akre Focus didn’t open for business until 2009).

These funds won’t dazzle when the market returns to bull form. But by surrendering less when the market flounders, they’ve each built market-beating track records over the long term.

Prices and other data are through April 17.

Ryan Ermey
Associate Editor, Kiplinger's Personal Finance
Ryan joined Kiplinger in the fall of 2013. He writes and fact-checks stories that appear in Kiplinger's Personal Finance magazine and on Kiplinger.com. He previously interned for the CBS Evening News investigative team and worked as a copy editor and features columnist at the GW Hatchet. He holds a BA in English and creative writing from George Washington University.