Forget the necktie -- give Dad something he can really use this year. We're serving up plenty of Foolish ideas to help you out.
Father's Day falls this weekend. It's a great day for me in that I'm both a father (of three) and a son. I've been blessed with a great family.
And I've learned about as much as anyone can learn from my Dad. Now it's my chance to return the favor, since investing is my expertise. My Dad, on the other hand ... well, let's just say he's turned to others for help, and they've too often looked the other way.
My Dad deserves better. Trouble is, I don't want to give him the shakes by recommending a series of speculative small caps. I want him to be able to earn market-thumping returns without taking on undue risk.
My experience says the best way to accomplish that is through a championship mutual fund, and I have one at the ready. Dad, meet the team at Bridgeway Large Cap Growth (BRLGX):
|
Bridgeway Large Cap Growth (BRLGX) |
|
|---|---|
|
Expense ratio |
0.82% |
|
Fund size |
$129.4 mil. |
|
1-year return |
3.55% |
|
5-year return |
N/A |
|
10-year return |
N/A |
Top 5 holdings
|
Company |
% of Assets |
|---|---|
|
Nordstrom |
2.89% |
|
Bristol-Myers Squibb |
2.45% |
|
Gilead
Sciences |
2.33% |
|
ExxonMobil |
2.24% |
|
Cisco Systems |
2.17% |
The best fund for my Dad
Bridgeway Large Cap Growth is a no-brainer for several reasons. First, manager John Montgomery is a proven winner. Large Cap Growth is up on both its category peers and the Russell 1000 Growth Index since opening for business in October of 2003.
Second, with a 0.82% expense ratio, Large Cap Growth is priced for performance. And, like with Cambiar Opportunity, which I recommended to my Mom last month, Bridgeway charges no loads or wealth-destroying 12b-1 marketing fees.
Third, a growth stock rally is under way and large cap growers are as cheap as they've been in years. Large Cap's focus should profit handsomely from this trend.
Fourth, Montgomery can't invest in anything other than his own funds. That speaks volumes. Montgomery will do more than take my Dad's savings; he'll invest alongside him.
Comfort for couch potatoes
My Dad and I are both big sports fans. We like the way competition fuels adrenaline. I'll never forget how we spent my 21st birthday: at Yankee Stadium, watching an awful Bronx Bombers squad eke out a 4-3 victory on an error. Nevertheless, it was a thrilling time.
Similarly, stock picking is a sport for me. But I'm also a huge fan of excellent managed funds. They combine the thrill of crushing the market with the comfort of being a spectator. My Dad's retired. It's his time to relax.
So, Dad, get the potato chips. Fire up the remote. I hear the Subway Series is on this weekend. Let's watch the game; John Montgomery will take care of the rest.
Think you can't beat the market with funds? Think again! The selections in Shannon Zimmerman's Motley Fool Champion Funds portfolio, including Bridgeway Large Cap Growth, are up an average of 37% versus just 23% for their comparable benchmarks. Ask us for an all-access pass to get an unfettered look at all of Shannon's picks, manager interviews, and model portfolios. There's no obligation to subscribe.
Fool contributor Tim Beyers, who is ranked 7,320 out of more than 30,000 rated players in our Motley Fool CAPS investor-intelligence database, is a Fool for stocks and funds. His portfolio holdings can be found at Tim's Fool profile. His thoughts on funds, Foolishness, and investing in general may be found in his blog. Since you're already headed to the grocery store, the Motley Fool's disclosure policy was wondering if you wouldn't mind picking up some beer and chips.
