The Kiplinger 25 Funds: A Well-Tended Fund Portfolio

Our favorite actively managed funds include picks for all seasons.

- Nellie S. Huang

A good garden will feature a mix of tall evergreens, midsize perennial flowering plants, fast-growing ground covers and maybe a showy piece such as a sculpted topiary. Some require regular tending (an annual pruning, say), while others can be left alone. Some might flower in the spring; others blaze with richly hued foliage in the fall. Each plant is chosen for its individual merits, but together they form a beautiful garden. // Assembling a portfolio of mutual funds is much the same. We consider a number of variables and a mix of strategies when we select the Kiplinger 25, our favorite actively managed no-load funds. We think they’re the cream of the crop, although they might not all be appropriate for your portfolio. The group is a diverse collection that ranges across large- and small-company funds, foreign and U.S. holdings, and high-yield and mortgage-backed bonds. Just like a mix of plant varieties, they thrive at different times and in different conditions.

Over the past year, our U.S. funds mostly bloomed while foreign funds wilted. Despite a nasty correction in late 2018, a sharp rebound left U.S. stocks in positive territory. It was not so for foreign stocks, which took a bearish turn last fall. Overall, the Kip 25 performed as we would have expected, with a few disappointments. A lot of our picks tend to hold up well in rough markets, and given economic, trade and other challenges ahead, we like how the group is positioned.

Read more about each of the Kip 25 funds on the pages that follow. For a performance review, see the box on page 56. We made one change to the roster; it is highlighted in the box on page 53. We’ve also created portfolios with the Kip 25 funds, suited to investors with different goals, risk tolerances and time horizons. You’ll find them on page 54. For a view of the Kip 25 at a glance, turn to page 57. Returns are through March 15.

LARGE-COMPANY U.S. STOCK FUNDS