American Funds Capital Inc Bldr ACAIBX

American Funds Capital Income Builder is still solid.

This fund has lagged its world-allocation peers during the recent rebound in global markets. That has dragged its five-year trailing return into the category's bottom half--albeit just barely. Prior to this recent stretch, the fund's returns landed in the category's top half in eight of the past 10 calendar years.  Read more 

This fund gives more priority to income than many of its stock-fund siblings. Its stock portfolio is filled with high-yielding names. Its bond portfolio consists mostly of U.S. Treasuries, investment-grade corporates, and mortgages.  Read more 

American Funds uses a multimanager system in which each of the fund's managers runs a portion of assets independently of the other managers. There's plenty of experience here: As of early 2008, this fund had eight managers (American Funds calls them portfolio counselors), and seven had more than a decade of investing experience at American.  Read more 

This fund stashes a sizable 55% to 65% of its assets in stocks, many of which pay dividends. It tends to lag in growth-driven markets, but it often shines in rougher periods.  Read more