This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Flight to Safety? Try These Mutual Funds




NEW YORK (CNBC) -- As investors flee a falling U.S. stock market, two analyst say there are still safe companies out there and the best way to buy into them is through mutual funds.

Christopher Davis, senior mutual fund analyst at Morningstar, said Jensen Portfolio (JENIX) has outperformed in both bad and good markets because it invests in "best of breed companies," including United Technologies (UTX), PepsiCo (PEP) and 3M (MMM).

"They won't invest in any company that hasn't had a return on equity below 15 percent over the past 10 years," Davis said. "They're really looking for high-quality companies."

More from CNBC
Cashin: Stocks at 'Critical Levels' -- Brace for Further Selling
Profit From the Pullback? 20 Stocks to Watch
Recession Seen Looming as Jobless Benefits End

His other fund picks are FPA Crescent (FPACX), which holds bonds, cash, and stocks in a variety of areas including, health care, energy, and technology; and Manning & Napier (MNHYX).

Jed Laskowitz, head of distribution at JPMorgan Funds, said in the same interview that with investors fleeing stocks for bonds and gold, at "this point in the cycle it would be difficult to move into equities, yet this is the perfect time" to move into large-cap growth stocks, which he said are "very attractive right now."

His picks for mutual funds are Manning & Napier and JPMorgan's own large-cap growth fund.

CNBC is a world leader in business news, providing real-time financial market coverage and business information.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs