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Kiplinger's Pick Of Best Mutual Funds





The list from the renowned Kiplinger's Personal Finance has some good names in it, but I'm very puzzled by why it will set up a "Best Fund Revival" category. Shall we expect consistency in performance for mutual fund picking?

From Kiplinger's Personal Finance:

BEST U.S. STOCK FUND
Dodge & Cox Stock (DODGX): "boasts a 41-year pedigree and a track record for excellence that's simply superb. Compared with all diversified U.S. stock funds, it ranks in the first decile for total return for the past one, three, five, ten, 15 and 20 years."

BEST INTERNATIONAL STOCK FUND
Dodge & Cox International (DODFX): "Stock picking by committee really works. Dodge & Cox International has barely been around five years, but no other no-load fund can touch its 17.6% annualized total return for the half-decade to September 1."

BEST EXCHANGE-TRADED FUND
iShares Dow Jones Select Dividend Index (DVY): "mimics an index of 100 stocks that generate above-average dividend yields, such as Altria Group and Merck. From its inception in November 2003 to September 1, the ETF returned an annualized 13%."

BEST SOCIALLY SCREENED FUND
Winslow Green Growth (WGGFX): "Winslow Green Growth managers Jack Robinson and Matt Patsky favor environmentally responsible companies. The $185-million fund gained an annualized 13% over the past five years, placing it in the top 10% of all funds that invest in small, rapidly growing companies."

BEST LOW-MINIMUM FUND
Excelsior Value & Restructuring (UMBIX): "Just $500 is enough to get you into this fund, which is a member of the Kiplinger 25, the list of our favorite funds. Manager Dave Williams excels at uncovering bargains among companies that are restructuring or are in industries that are undergoing consolidation."

BEST MONEY-MARKET FUND
Transamerica Premier Cash Reserve: "You need only $1,000 to open an account, which yields 5.2%, and you can write an unlimited number of checks, with a $250 minimum."

BEST FUND REVIVAL
Bruce Fund (BRUFX): "Miserably inconsistent performance once landed Bruce Fund, run by the father-and-son team of Robert and Jeff Bruce, in our Mutual Fund Hall of Shame. The fund, which invests in an odd stew of bonds and obscure small-company stocks, gained just 7% annualized from 1987 through 1999. That trailed the S&P 500 by nine percentage points per year. Then, with the end of the bull market, many of Bruce's holdings suddenly came into favor. From 2000 through August 2006, the fund trounced the S&P with an annualized 30% return."

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