Best Mutual Funds

Carefully evaluating your mutual fund choices can help alleviate nervousness before taking the plunge. The best mutual fund for an individual can vary depending on the initial investment, the level of risk the consumer is willing to bear, and the length of time he or she is willing to invest, which can mean riding out rises and falls in the market. Consult a financial advisor or other professional for advice tailored to your needs.

1.

 Bridgeway was the top pick on the Kiplinger.com 2006 list of "The 25 Best Mutual Funds." The fund's manager uses a computer to pick stocks, and focuses on "midsize firms with good growth prospects," realizing a 32% annual return. Unfortunately, the fund is currently closed to new investors.

2.

 For those who were unable to get in on the Bridgeway Aggressive Investors 2, Kiplinger.com recommends the Bridgeway Small-Cap Growth fund. With the same skilled manager, it looks to be on its way to future greatness.

3.

 U.S. Global Investors heads the list of overall top performers at Yahoo!Finance for five-year performance. It boasts an annual return of 49.93%.

4.

 Yahoo!Finance lists Oberweis China Opportunities as the top performer over the past year, with a stunning return of 83.30%.

5.

 American Funds American Mutual A is one of the best large-cap funds, according to Money Magazine's "Ultimate Mutual Fund Guide 2006", with a one-year return of 16.2% and a minimum investment of only $250.

6.

 Kiplinger.com listed Dodge & Cox Income as the top bond fund, citing its below-average fees, experienced management, and inclusion of medium-maturity bonds.

7.

 Aston/Optimum Mid Cap N is a top performer on Money Magazine's list of mid-cap funds. Investors enjoyed one-year returns of 20.9%.

8.

 Money Magazine includes Cohen & Steers Realty Shares as a top specialty fund. As its name suggest, it focuses on the real estate market and posted one-year returns of 37.1%.

9.

 Among small-cap mutual funds, Royce Opportunity Inv was noted by Money Magazine for an 18.8% one-year return.

10.

 MSN Money listed PS WilderHill Energy as one of "The 4 Best Mutual Funds for 2006." This fund focuses on environmentally-friendly energy, so MSN predicts the future need for clean energy will lead to a future rise in the fund's performance.

Helpful Resource

The Motley Fool offers advice on many financial topics, including mutual funds. Relevant articles include "The Truth About Mutual Funds" and the "Mutual Fund Glossary."

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