Russel Kinnel: It’s been another great year for large growth, thanks to AI, falling interest rates, and weight-loss drugs. Large-growth stocks are up about 35% for the year to date. That’s one heck of a return. Naturally, it makes me want to look for attractive investments far away from large growth for return potential and relative safety.
I don’t know what 2025 has in store, but these funds have appeal for the long haul.
3 Funds for 2025 and Beyond
- Dodge & Cox International Stock DODFX
- American Century Mid Cap Value ACMVX
- T. Rowe Price Tax-Free High Yield PRFHX
First, is Gold-rated Dodge & Cox International. We give it High pillars across the board because it has savvy experienced value investors, a tested strategy, and a parent firm that takes its commitment to shareholders seriously. A $10,000 investment in this fund when launched in 2001 would be worth more than $49,000 today compared to $33,000 for the benchmark. I actually bought this fund soon after it launched, and it is one of my top holdings.
American Century Mid Cap Value has a low R-squared versus large growth, so I like that. It stays grounded in value stocks so that it holds up well in growth declines, though it also means recent results have been kind of unexciting. The fund looks for durable businesses with competitive advantages, but its managers insist that their stocks be cheap, too, so they have to sift through a lot of companies to find names that tick all the boxes.
Finally, T. Rowe Price has made major cuts to its muni funds’ expense ratios in order to become more competitive in a lower-return asset class. T. Rowe Price Tax-Free High Yield cut fees by 4 basis points to 63 basis points. We give the fund a High Process rating and an Above Average People rating. It carries a Silver rating, and it really provides a nice income pop for taxable accounts.
Watch 3 Great Funds Having a Lousy 2024 for more from Russel Kinnel.
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