The Best Little Funds No One Is Talking About

Photo of a golden egg

Virtually every reader who has called or e-mailed me in the past two years has talked about one or more of the following: Vanguard, indexing, low costs or Standard & Poor’s 500-stock index.

Don’t get me wrong. Investing in low-cost index funds, such as those offered by Vanguard and others, is sober and sensible. But if you look hard enough, you can also find a handful of actively managed funds that will likely deliver index-beating returns without taking outsize risks. A mix of index and active funds is, in my view, the best choice for many investors.

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