Course Correction

With fears of an economic about-face, how can you keep your fund portfolio on the right track?

be a core holding,” he says, “offering reasonable income with moderate risk. Funds such as PIMCO Total Return Fund and Fidelity Intermediate Bond Fund may be good choices.”

PIMCO Commodity RealReturn Strategy Fund also rates a favorable mention from Coumarianos. “It tracks the Dow Jones AIG Commodity Index so you get broad exposure to commodities, including oil and gas,” he says.

Coumarianos also says there’s value in large-cap domestic stocks, particularly those companies who have protected their competitive positions. His picks in the large-cap growth area include T. Rowe Price New America Growth, Vanguard Growth Equity Fund, and USAA Aggressive Growth. In the large-cap value category, picks include ICAP Select Equity Fund, Sound Shore Fund, and Weitz Value Fund.

A well-diversified mutual fund portfolio for these uncertain times should include old reliables such as large U.S. companies and high-quality bonds as well as new favorites that range from foreign stocks to small companies. A small (perhaps 5%) allocation to commodities and a similar allocation to a real estate fund might provide valuable protection in case inflation heats up and the market turns down.

Although inflation fears and geopolitical concerns have shaken stock markets lately, Tolley has little inclination to cut back on stocks in anticipation of a possible correction, especially for investors who are in it for the long haul. “When stock prices fall,” she says, “there are buying opportunities. At any kind of store, when is the best time to go shopping? During the semi-annual sales.”

B.E.’s best-performing Mutual funds

FUND NAME

TICKER SYMBOL

1-YEAR RETURN

3-YEAR RETURN

5-YEAR RETURN

MINIMUM INITIAL INVESTMENT

PHONE

LARGE GROWTH

Marsico 21st Century MXXIX 23.41% 20.65% 12.93% $2,500 888-860-8686
Columbia Marsico 21st A NMTAX 22.63 20.47 12.52 1,000 800-321-7854
Amana Trust Growth AMAGX 19.81 21.74 8.40 250 800-728-8762
Fidelity Fifty FFTYX 18.56 10.16 7.61 2,500 800-343-3548
Dreyfus Prem Alpha Gr C BSFCX 16.35 13.23 7.45 1,000 800-554-4611

MID GROWTH

Delaware American Ser A DASAX 11.35 17.32 14.37 1,000 800-523-1918
Baron Partners BPTRX 20.06 29.89 14.37 2,000 800-442-3814
Columbia Acorn Z ACRNX 16.44 21.94 12.31 75,000 800-345-6611
Columbia Acorn Select Z ACTWX 17.28 15.89 11.75 50,000 800-345-6611
Munder Mid-Cap Core Gr Y MGOYX 12.41 20.28 10.82 1,000,000 800-438-5789

SMALL GROWTH

Royce Value Plus Service RYVPX 30.00 28.78 22.75 2,000 800-221-4268
William Blair Sm-Cp Gr N WBSNX 11.75 20.82 14.16 5,000 800-635-2886
UMB Scout Small Cap UMBHX 16.16 20.30 12.35 1,000 800-996-2862
Excelsior Small Cap UMLCX 18.03 20.67 11.97 500 800-446-1012
First Amer Sm Cap Sel Y ARSTX LIGN=”MIDDLE”>21.93 “MIDDLE”>20.24 11.15 0 800-677-3863

LARGE BLEND

MassMutual Sel Foc Val S MFVSX 4.43 11.72 10.98 1,000,000 888-309-3539
Penn St Adv Sect Rot A PSRPX 12.95 17.24 9.75 2,000 866-207-5175
Janus Contrarian JSVAX 22.05 23.56 9.73 2,500 800-525-3713
CGM Mutual LOMMX 13.62 18.67 9.11 2,500 800-343-5678
Mairs & Power Growth MPGFX 8.03 13.00 9.05 2,500 800-304-7404

MID BLEND

Fidelity Adv LevCo Stk A FLSAX 18.65 27.14 24.64 10,000 877-208-0098
Fidelity Leverage Co Stk FLVCX 20.58
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