So I have selected my favorites from among the outstanding performers and present them in the table above. If high risk keeps one up at nights, I think the following are likely to turn out to have the lowest volatility: Fairholme Fund; Fidelity Low-Priced Stock Fund; Vanguard Health Care Fund; Vanguard REIT Index Fund; and Yacktman Fund. One could, I think, do a lot worse than to buy an equal dollar value of shares in all ten funds, but those five may have a better shareholder "sleep-to-performance ratio."
Even somewhat lower risk mutual funds can go down substantially, however, during stock market debacles like occurred in 2008 through early March, 2009. And we keep hearing of all sorts of things that might alarm investors, from cyber terrorism to war in the Middle East, a double-dip recession, the end of the 5000-year Mayan calendar, etc. Therefore, I recommend that one acquire shares in the chosen mutual funds gradually, thus gaining more in the inevitable dips and a better average per share price.