Morningstar Medalists That Are Easy to Own
Six funds with modest volatility and outstanding Morningstar Investor Returns.
A couple of weeks ago I spelled out the problems that investors have with timing and emotion. In this space, I'll share some ideas for funds that you can hold through the long haul. First, though, here are some general ideas for funds that will make ideal long-term matches.
Look for funds with relatively low Morningstar Risk ratings. Examine their calendar-year returns to see if you'd have been able to hold on through the worst years--the years 2008 and 2011, for example, would have tested any investor's commitment. You might even look over your own records to see which funds you timed well or at least invested in steadily versus those that you bought or sold at just the wrong time. If that's too complicated, just buy an allocation fund. A mix of stocks and bonds will generally be less volatile than a pure stock fund, and our data show that people fare better in allocation funds.
Russel Kinnel does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.