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Five Great Funds for Your Tax Refund

It's a good time to build up your savings.

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So, you just got your tax refund. I know it's tempting to spend it, but remember you've got some ground to make up in saving for retirement, so I'd suggest that you consider investing it. Here are a few of my favorite ideas for that refund check.

I've listed them in descending order of investment minimum in order to accommodate refunds of all sizes.

 Third Avenue Small-Cap Value (TASCX)
If you don't already own a small-cap fund, this is a good time to get one. Nearly all of them are open to new investors and last year's bear market brought down valuations a bit. I'm a fan of Curtis Jensen's "cheap but safe" approach. Since the fund launched in 1997, it has returned 110% versus its benchmark's 69% gain. Jensen has more than $1 million in the fund, which requires a $10,000 minimum investment.

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Russel Kinnel does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.