The Sunday Journal sought the counsel of Morningstar, scouring through its database of roughly 12,000 mutual funds, looking for standouts in each category. After narrowing them down, Morningstar helped pinpoint those with the brightest prospects. These are diversified funds with a record of success in up markets and an ability to hold their own in down times. Moreover, they tend to carry average or below-average risk, meaning you'll sleep a bit more soundly in times like these. It has a bit of a value bent, which holds it back during rip-roaring markets but protects it some during downturns.
Meridian fund offers above-average returns with low risk.
The fund offers high returns with average risk in its hunt for companies possessing a strong franchise and a relatively cheap stock price. For details, see the Smart Money column in this section. International Funds Tweedy Browne Global Value overall is one of this category's best offerings, according to Morningstar. It hedges its foreign-currency exposure, allowing it to match high returns with low volatility. Artisan International fund also is a top option in this category.