This fund’s defining characteristics are its buy-and-hold mentality and its compact portfolio, which will generally consist of between 25 and 30 stocks. In picking stocks, the fund looks for companies that have strong revenue streams. Its top holdings, which include 3M and Wal-Mart, tend to be in easily recognizable blue chips. New additions to the portfolio are vetted thoroughly to make sure that they have adequate long-term potential. The focus on quality makes this a fairly low-risk fund and one that offers substantial downside protection. In 2008, for example, it was in the top 3 percent of its Morningstar large-blend category.
Read More About the FMI Large Cap.
World bond: Templeton Global Bond (TPINX)