Seven mutual funds that have a common approach of cautious yet successful strategies are good picks for investors to count on for the long term, according to Fortune.Fortune analyzed Morningstar data to screen for funds with both total returns and investor returns in the top 20% of their categories over 10 years.
The seven are: The Large-Cap American Century Equity Income fund, which invests somewhat conservatively. Over the past 10 years the fund has gained almost 13% a year, with dollar-weighted returns of nearly 12%.
The Excelsior Mid Cap Value and Restructuring Fund sifts through companies with market capitalizations between $2 billion and $12 billion, looking for turnaround stories with unrecognized growth potential or the promise of high returns on capital.
The small-cap Pennsylvania Mutual Fund has managed an average total return of nearly 16% annually over the past 30 years. Fund manager Chuck Royce still applies the lessons of the 1970s bear market and as a result, focuses on preventing painful losses even during market downturns.
The T. Rowe Price Capital Appreciation fund is designed for stability with its blend of value stocks, convertible bonds, traditional fixed-income offerings and cash and has had positive returns every year for 15 consecutive years. It has averaged a total of 12.3% a year for over 10 years.
The Fidelity International Discovery and Vanguard International Value funds are two global funds that perform well internationally.
Lastly, the T. Rowe Price Emerging Markets Stock Fund seeks out promising growth stocks and monitor country’s economic outlook constantly. As emerging markets have performed well over the past three years, the fund has soared an average of almost 33% annually.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.