Top No Load Mutual Funds - Insightful Investing Newsletter - October 2003


	Top No-Load Mutual Funds Model Portfolios


	Every Quarter We Update Our Model Portfolios of Best Performing No-Load Mutual Funds, Fidelity Mutual Funds, and Vanguard Mutual Funds. Besides possible changes in Asset Allocation, we let you know of any new funds to buy for your portfolio, or previous funds to sell from your portfolio. Here are our portfolios for October of 2003.

Fidelity Investments			Return %		Conservative		Insightful
Fund Name	Symbol	Type	YTD	3 Yr	Taxable	IRA/401K	Taxable	IRA/401K
Short-Term Bond or	FSHBX	STB	3.12	6.64	20%	20%	10%	10%
Spartan Short-Interm Muni	FSTFX	STMB	2.81	5.73	20%		10%
Mortgage Securities	FMSFX	IGB	2.81	7.82	5%	5%	10%	10%
Capital & Income	FAGIX	HYB	31.32	4.29	5%	5%	10%	10%
Real Estate Investments	FRESX	RE	22.56	14.21	10%	10%	10%	10%
Diversified International	FDIVX	Intl	23.60	(1.61)	10%	10%	10%	10%
Equity-Income II	FEQTX	LCV	17.74	(1.54)	10%	10%	10%	10%
Mid-Cap Stock	FMCSX	MCG	23.76	(7.38)	5%	5%	5%	5%
Value	FDVLX	MCV	17.65	10.34	5%	5%	5%	5%
Low-Priced Stock	FLPSX	SCB	23.68	15.84	10%	15%	20%	20%
Cash Reserves or	FDRXX	MM	0.70	2.66	20%	15%	10%	10%
Spartan Muni Money	FIMXX	TEMM	0.55	1.75	20%		10%
					100%	100%	100%	100%

Vanguard			Return %		Conservative		Insightful
Fund Name	Symbol	Type	YTD	3 Yr	Taxable	IRA/401K	Taxable	IRA/401K
Short-Term Corp	VFSTX	STB	3.74	6.56	20%	20%	20%	15%
Ltd-Term Tax-Ex	VMLTX	STMB	2.62	5.58	20%		20%
GNMA	VFIIX	IGB	1.71	7.59	10%	10%	10%	10%
REIT Index	VGSIX	RE	24.14	14.49	10%	10%	10%	10%
International Value	VTRIX	Intl	20.66	(2.80)	10%	10%	10%	10%
U.S. Value	VUVLX	LCV	13.18	1.02	10%	10%	10%	15%
Strategic Equity	VSEQX	MCC	27.33	5.33	10%	10%	10%	15%
Explorer	VEXPX	SCG	26.84	(2.80)	10%	15%	15%	15%
Prime Money Mkt or	VMMXX	MM	0.70	2.71	20%	15%	15%	10%
Tax Exempt Money Mkt	VMSXX	TEMM	0.71	1.96	20%		15%
					100%	100%	100%	100%

All Funds Model Portfolio			% Return		Conservative		Insightful
Fund Name	Symbol	Type	YTD	3 Yr	Taxable	IRA/401K	Taxable	IRA/401K
PIMCO Low Duration D	PLDDX	STB	2.49	6.52	10%	10%	10%	10%
PIMCO Total Return Mortgage D	PTMDX	IGB	2.73	8.54	10%	10%	10%	10%
Westcore Flexible Income	WTLTX	HYB	19.35	9.05	10%	10%	10%	10%
Third Avenue Real Estate Value	TAREX	RE	22.06	15.79	10%	10%	10%	10%
Oakmark International	OAKIX	Intl	19.25	3.61	0%	5%	5%	5%
Julius Baer International Equity	BJBIX	Intl	16.06	(3.71)	5%	5%	5%	5%
Oakmark I	OAKMX	LCV	12.53	8.73	10%	10%	10%	10%
ABN AMRO Mid Cap N	CHTTX	MCC	26.05	8.54	5%	5%	5%	5%
Yacktman	YACKX	MCV	16.06	20.09	5%	5%	5%	5%
Royce Micro-Cap Inv	RYOTX	SCC	33.66	11.40	5%	5%	5%	5%
RS Partners	RSPFX	SCC	41.69	19.46	5%	5%	5%	5%
William Blair Small Cap Growth	WBSNX	SCG	40.52	6.23	0%	5%	5%	5%
Royce Special Equity	RYSEX	SCV	12.71	22.80	5%	5%	5%	5%
Your Brokerage Money Mkt		MM	n/a	n/a	20%	10%	10%	10%
or Tax Exempt Money Mkt		TEMM	n/a	n/a	20%		10%
					100%	100%	100%	100%

Portfolio Changes For 4th Quarter 2003
There are a couple of items to notice about our list of funds this quarter. First, we have added High Yield Bonds. Second, we have broken out Large Cap Funds and Mid Cap Funds into Growth and Value Categories. Since there are several new categories, there are several additional new stock and bond funds. The only real change was the removal of Wasatch Small Cap Growth (WAAEX). The reason for that is it has been closed to new investors, so you will no longer be able to purchase this fund. This has happened in the past, so we’ll keep an eye on it and let you know if you should purchase this fund if it becomes available again.
Asset Allocations For 4th Quarter 2003
Last Quarter we suggested that investors put any new money targeted for bond funds in Short Term Bonds. With the economy starting to show some signs of life and interest rates appearing to have hit bottom in June we think its now time for investors to change their bond allocation. As the economy starts to grow again, interest rates eventually start to rise. When this happens the prices for bonds start to fall, especially for those that have a longer duration. With this in mind, it is best to have your bond allocation in Short-Term Bonds. High Yield Bonds, on the other hand, tend to perform better on a relative basis than investment quality bonds when the economy is growing strongly. This is because the riskier businesses that issued these bonds are more likely to survive in a strong economy. Because of this relationship, we suggest you start moving some of your assets out of Intermediate Bonds and Mortgage Securities (Intermediate Government Bond). A good rule of thumb would be to consider placing 1/3 of your bond allocation into High Yield Bonds and 2/3 into Short-Term Bonds or Short-Term Municipal Bonds in your taxable accounts if you are in a high tax bracket.

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