Dependable Investments That Get the Job Done

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We recently asked Morningstar readers to tell us about the investments that have been the most dependable performers for them--the ones that just get the job done reliably without causing undue anxiety. However they choose to refer to it--their "sleep-at-night" investment, their anchor, their rock--we wanted to know about the one investment in readers' portfolios that they wouldn't want to do without.

Though some respondents pointed to individual stocks as their most dependable investments (or as one reader put it, "a well-diversified portfolio of high-quality stocks"), most mentioned mutual funds. In particular, sturdy stock/bond hybrid funds and funds focused on blue-chip stocks were favorites, as were low-cost index funds. Other posters said bonds and cash provide them with valuable peace of mind.

Below is a sampling of the responses. (For simplification purposes, I've tried to focus this summary on investments that were mentioned by two or more readers.) To read the full thread and weigh in yourself, however, please click here.

This fund's stellar returns rank it in the very upper echelons of the moderate allocation category over all trailing long-term periods (and short-term periods, too, for that matter). And investors have certainly taken notice--in a shareholder-friendly move, the $23 billion fund closed to new investors in 2014 to preserve its investing flexibility. But, as Morningstar senior fund analyst Greg Carlson points out in a recent analyst report, fund manager David Giroux has a lot of places where he can deploy that capital: equities, traditional investment-grade and high-yield bonds, leveraged loans, convertible bonds, preferred stocks, and cash.

Readers who consider themselves T. Rowe Price Cap App true believers include Sunbird, stillers, Health1, edozak00, xgrock, alibai, thebestchoice, and lionsgate.

Vanguard Funds Many readers consider low-cost Vanguard offerings to be among the easiest investments to own.

"I love (almost) all of my Vanguard funds, but if I had to pick one I couldn't live without, it would be

lawbabie

.

Likewise,

JHAsheville

owns several Vanguard funds that this reader calls "autopilot funds that fill up the buckets": Gold-rated large-growth offering

JHAsheville

said.

Chief K

and

Laslo6771

, who said: "If an investor doesn't know where to put the money, use Vanguard 500 Index."

Other Vanguard index offerings that readers considered portfolio staples are

Chief K

,

Hobocon

,

Hilo99

, and

GoodyearGuy

) and

jekarlon

and

GoodyearGuy

). "My must-haves in my portfolio are Total Stock and Total Bond. They provide me with the diversification that let me meet my goals in retirement," said

GoodyearGuy

, who also owns Gold-rated

Many readers also mentioned Vanguard Health Care, which may seem like a surprising choice owing to its narrower focus; however, this value-leaning, low-turnover fund has achieved very competitive risk-adjusted returns over long stretches. True believers include edozak00, Beanclub, Hobocon, Hilo99, and PRESSmUP, who had this to say about the fund: "Purchasing this over 12 years ago, I bought this as a conservative and defensive anchor. It's odd to think that healthcare was a defensive move, and then turned into something else entirely over that span of time. It will be interesting to see what happens to this over the next 12 years."

Some other frequent mentions were Vanguard Dividend Growth, whose adherents include

vandy73

,

Hobocon

, and

alibai

, as well as Gold-rated allocation funds

xgrock

,

JRO75

,

Vanguardman

, and

hdw4567

) and

Vanguardman

,

Hilo99

, and

hdw4567

).

Primecap Funds

Funds run by the Primecap team, winners of Morningstar's Domestic-Stock Fund Manager of the Year award for 2014, were frequently mentioned portfolio staples. Many respondents said that they gain access to the Primecap managers through the Gold-rated, Vanguard-advised

Sunbird

,

ridg0008

,

briblack

,

JHAsheville

,

topdown93

,

TinleyKingMR

,

Hilo99

, and

xgrock

.

Meanwhile, other readers said they owned Primecap Odyssey funds, which are not affiliated with Vanguard. Among the favorites mentioned were Gold-rated

xgrock

,

edozak00

,

TinleyKingMR

, and

revell10306

), which is also closed to new investors, and Gold-rated

edozak00

and

jekarlon

), which remains open to new investors.

This fund, run by Will Danoff (who just celebrated his 25-year anniversary running the fund in September), has one of the best long-term records in the large-growth category (in the top quintile over 10 years and first percentile over 15 years). And investors have noticed: It is also one of the largest funds in the category, at $111 billion in assets. Danoff has made tweaks to the process over the years to accommodate its growing size, including trading less often, owning fewer mid- and small-cap names, and maintaining a portfolio of 270 to 500 stocks. However, despite the fund's large asset base and portfolio of hundreds of names, it has avoided looking too marketlike, according to Morningstar senior analyst Katie Rushkewicz Reichart.

Among our readers, Contrafund true believers include

stecary

and

Peter5

, who owns Contrafund in addition to Silver-rated

Peter5

said.

This multisector-bond fund's yield focus is somewhat atypical for PIMCO, as is its heavier-than-usual reliance on sectors less tied to day-to-day macro decisions, Morningstar senior analyst Eric Jacobson noted in a recent analyst report. However, these qualities, as well as its strong resources (including group head and fund manager Dan Ivascyn) have also helped isolate the fund from troubles in the wake of Bill Gross' 2014 departure. Indeed, this fund has boasted a five-year return near the top of its Morningstar Category at the end of October 2015, and volatility has been below its peers'.

Among readers who mentioned PIMCO Income were xgrock, Hilo99, and stillers.

Etc. Some respondents, such as retiredgary and stillers, mentioned that CDs provided ballast in their portfolios. And guaranteed fixed-annuity TIAA Traditional was mentioned by xgrock as well as Juris2, who said: "This isn't an investment that maximizes my total return. It's one that minimizes the maximum I could lose." This point was echoed by lionsgate, who added: "[TIAA Traditional] gives me a 'Peaceful Easy Feeling' and my bucket one--good, old cash--sings harmony."