The best choices for stable, long-term growth in five essential categories.
The funds we assembled in 2005 averaged a one-year return of 16 percent, vs. 10 percent for the S&P 500 index.
Last year we updated our picks, and the portfolio returned 21.2 percent from June 7, 2006, through June 5 of this year, vs. 23.4 percent for the S&P (our four equity funds averaged a 24.2 percent return, and our capital preservation fund returned 9.2 percent).
Given that success, we kept the basic building blocks in place this year.
The anchor of our lineup remains a total-market index fund, which invests in companies of all sizes. To complement that core holding, we have an actively managed large-cap fund along with more specialized small-cap and international picks for diversification and return potential. There's also an alternative-asset fund for additional balance.
I find this to be a good source for things to look into. You will find many of these recommenditions in many other similar articles. Again note the focus on diversification.