PremierInvestorNetwork.com Monthly                    October 2001
                                                 Investors Edition
Copyright ? 2001, All rights reserved.
Redistribution in any form is strictly prohibited.

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The Premier Investor Network Presents
the Investors Edition for October 2001
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In this Investors' Edition:

  -Mutual Fund Focus for October by MutualInvestor.com-

     Twelve Safer Equity Fund Bets


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Twelve Safer Equity Fund Bets
By Steve Wagner
===================================


The objective of this monthly screen is to identify what we're
calling safer bets for different equity investment objectives.
By safer we don't mean that they can't lose money in any short-
term period.  Equity mutual funds in general have greater risk
(are more volatile) than bond funds and money market funds but
have greater long-term return potential.  What we're providing
here are the more conservative best bets within each objective,
those that have produced competitive results with minimal risk
and volatility relative to other funds with the same objective.

These funds are geared to the average mutual investor who wants
to participate in the equity market and is willing to give up a
little upside potential to sleep better at night.  Each of them
has Value Line's highest overall score of '1' as well as a risk
score of '2' or better (low risk).  Each fund also sports a low
expense ratio in relation to their equity objective peers and a
low initial fund investment of $3,000 or less.

Since return and risk should be considered in light of a fund's
investment objective, we break down our safe fund bets in four
different equity objectives: growth, growth and income, income,
and balanced.  Each objective is equity-oriented but varies in
terms of their emphasis on growth or income.  Mutual investors
interested in any one of these funds should do their own 'due
diligence' to ensure that the fund meets their investment goal
and comfort with risk.  No one mutual fund fits all investors.


Growth Objective
----------------

Growth funds seek to provide long-term capital appreciation by
investing in a diversified portfolio of common stocks.  Current
income, if considered at all is a secondary concern.  Three low
risk best bets with growth objectives are as follows:

Fidelity Dividend Growth      (FDGFX)
Gabelli Asset                 (GABAX)
Tweedy, Browne American Value (TWEBX)

Tweedy, Browne American Value (5-Year Avg 12.3%, +1.5% S&P 500)
buys common stocks with very low price multiples, and since its
1994 inception has consistently maintained a mid-cap value bias.
Due to the low price risk of its holdings, the fund's risk score
is as excellent as its returns, says Morningstar.  They also say
that its returns look especially good after taxes.

Gabelli Asset (5-Year Avg 13.8%, +2.9% S&P 500) also likes the
mid-cap sector, and over the past five years has moved between
value and blend styles.  Its value approach and diversification
across industries and issuers helps limit risk, per Morningstar.
Its top-notch returns are the result of great stock picking and
willingness to play bold themes, according to Morningstar.

Fidelity Dividend Growth (5-Year Avg 15.7%, +4.9% S&P 500) also
blends value and growth stocks but prefers to fish in large-cap
waters where the fund can fulfill its mandate of holding growth
companies which exhibit potential for dividend growth.  Its low
risk profile results from its avoidance of volatile tech stocks,
in addition to tight risk controls.  Strong research and equity
selection, Fidelity trademarks contribute to an excellent long-
term performance record.


Growth & Income Objective
-------------------------

Growth and income funds seek long-term growth of capital, plus
income from dividends.  They typically select equities for both
their appreciation potential and dividend-paying ability.  Three
low risk best bets with growth and income objectives are listed
below:

Dodge & Cox Stock                  (DODGX)
Jensen Fund                        (JENSX)
T. Rowe Price Capital Appreciation (PRWCX)

T. Rowe Price Capital Appreciation (5-Year Avg 12.5%, +1.7% S&P
500) specializes in finding opportunities among securities that
the market has overly punished for various reasons.  It invests
in common stocks believed to be undervalued by various measures,
such as price/book and establishes relatively large positions in
those companies it finds particularly attractive.  The fund also
invests in fixed income securities and convertibles to give it a
risk-adverse profile.

Dodge & Cox Stock (5-Year Avg 15.3%, +4.4% S&P 500) also has a
value approach but invests primarily in the large-cap sector.
Through the years, it has consistently maintained a large-cap
value bias.  Like the other value funds profiled, the lower price
risk of its holdings contributes to its low relative risk score.
Morningstar says management's eye for fundamentally strong
companies trading at cheap prices has produced results that are
tough to argue with and you'll get no argument from me.

Jensen Fund (5-Year 13.8%, +3.0% S&P 500) invests primarily in
growth companies with long histories of delivering high returns
on equity, are in excellent financial condition and have raised
dividends in recent years.  Since its 1992 inception, the fund
has consistently maintained a large-cap growth style bias.  The
fund invests in growth stocks at a reasonable price and because
of management's focus on valuation and quality, fund volatility
has been kept low.


Income Objective
----------------

Income funds (commonly known as equity-income funds) seek income
from the dividends and interest generated by the fund's holdings.
Growth of capital is a secondary objective.  Three low risk funds
with income objectives are as follows:

American Century Equity Income (TWEIX)
Parnassus Equity Income        (PRBLX)
Van Kampen Equity Income A     (ACEIX)

American Century Equity Income (5-Year Avg 14.0%, +3.1% S&P 500)
is similar to T. Rowe Price Capital Appreciation in that it buys
stock of companies that are beaten down but focuses on companies
that can quickly rebound.  Though the years, it has maintained a
mid-cap value bias.  Because it is less patient than other value
funds, portfolio turnover is higher-than-average, making it more
suited to IRA and other tax-deferred accounts.

Parnassus Equity Income (5-Year Avg 13.0%, +2.1% S&P 500) and Van
Kampen Equity Income A (5-Year Avg 13.5%, +2.7% S&P 500) are both
large-cap value oriented in management style.  Management directs
its attention toward the issues of well-established, undervalued
companies that offer potential income, consistent with safety of
principal.  Both income funds invest the majority of assets in
income-producing equities, with a portion invested in bonds and
convertibles to derive a risk-adverse portfolio.


Balanced Objective
------------------

Balanced funds seek both income and capital appreciation by
investing in a fairly static mix of stocks and bonds, with at
least 25% of portfolio assets in bond securities at all times.
Three low risk funds with balanced objectives are as follows:

Dodge & Cox Balanced    (DODBX)
Oakmark Equity & Income (OAKBX)
Thompson Plumb Balanced (THPBX)

Oakmark Equity & Income (5-Year Avg 16.5%, +5.7% S&P 500) buys
cheap mid-cap stocks of cash-rich companies for its equity stake
and government bonds and high-yield corporate securities for its
fixed income allocation.  Due to the low price risk of its stock
holdings and quirky asset mix, the fund's risk score is very low
relative to other domestic hybrids, while generating high return
for shareholders.

Dodge & Cox Balanced (5-Year Avg 12.7%, +1.9% S&P 500) uses the
same large-cap value approach followed by Dodge & Cox Stock for
the equity allocation and invests in investment-grade securities
for the fixed income stake.  This 'traditional' balanced fund is
one of the oldest funds in America with roots dating back to the
year 1931.  Morningstar calls it a category standout, generating
strong long-term results for loyal shareholders.

Thompson Plumb Balanced (5-Year Avg 14.0%, +3.1 S&P 500) uses a
combination of value and growth methods to construct a broadly
diversified portfolio of companies with strong franchises, high
returns on equity, solid long-term prospects and low valuations.
On the fixed-income side, the fund does not make large interest-
rate bets, but invests in high-quality, intermediate-term bonds.
Because it tends to allocate assets more in equities than other
balanced offerings, it is most suitable for investors primarily
favoring solid capital appreciation over income.


Summary
-------

Through the years, I've been asked to recommend 'good' mutual
funds.  These dozen funds have kept risk low by having 'tight'
risk controls and focusing on identifying value opportunities
through strong fundamental research.  Each of them have beaten
the stock market (measured by the S&P 500 index) over the past
five years, while minimizing risk relative to other funds with
the same objective.  Accordingly, they are all 'good' funds in
our opinion and safer ways to play the equity market.  Most of
them are offered on a no-load basis and come with low expenses,
adding to their overall appeal.




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