Funds to Buy: FPA New Income (FPNIX)
One of my favorite funds to buy is FPA New Income (FPNIX). There’s a reason I’ve chosen this very specific mutual fund, and that’s because the man behind the FPA Funds is a genius. I mean, we’re talking world-class fund manager.
Robert Rodriguez manages the fund, and his all-too-infrequent commentaries are both prescient and insightful. He believes we are in for big trouble in the coming years and has positioned his New Income portfolio very conservatively. The FPA funds also publish extremely detailed policy statements about what they invest in, their philosophy for each fund, their fund’s goals, their selection process, and portfolio construction.
Even if you don’t invest in FPA funds, you must read their literature. You have to love a fund that says quite clearly, “We do not like to lose money! … Caution and preservation of capital have been the two guiding principles of the past five years.” Have they missed out on this big bull market? Sure, but that’s not the point of the fund.
More importantly, FPNIX has outperformed its benchmark for years, making it one of the top funds to buy. Expenses for FPNIX run 0.57%, or $57 per $10,000 invested.