Netflix adds 5.3M subscribers in Q3 >>> READ MORE

5 Mutual Funds That Belong in Any Retirement Portfolio

Skilled management will steer your money toward a nice nest egg

      View All  

Mutual Fund #1: PrimeCap Odyssey Growth (POGRX)

funds-retirement-funds-pogrxThe PrimeCap Odyssey Growth (POGRX) is a solid choice for a “core” fund to anchor a portfolio. This large company growth fund uses a team approach to find companies that are growing, but sell at reasonable valuations.

This $3.8 billion fund is heavily committed to the healthcare sector, with a 42% stake in these names. Technology stocks are also prominent and comprise 27% of this portfolio. Recent top holdings for the fund include: Seattle Genetics (SGEN), Amgen (AMGN), Immunogen (IMGN) and Biogen Idec (BIIB).

Patience is the key here — with annual turnover of 10%, making this a fine choice for taxable accounts with this low-turnover approach acting to minimize taxable distributions. POGRX was up 39.3% last year and has gained an annualized 21.4% over the past 5 years, placing it in the top 17% of its Morningstar peer group.

All PrimeCap-managed funds within the Vanguard Group are now off-limits to most new investors. However, this fund is open to new monies and closely resembles the closed Vanguard Capital Opportunity (VHCOX) which has a super long-term record.

A reasonable expense ratio of just 0.65% annually, or $65 for every $10,000 invested, adds to this fund’s appeal.

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC