To employ Ibbotson's thinking, consider buying a balanced fund that holds a mix of stocks and bonds. A fund that keeps about 70% of assets in stocks and the rest in fixed income is Franklin Templeton Growth Target ( FGTIX), which has returned 4.2% annually during the past decade, outdoing 85% of its moderate-allocation competitors, according to Morningstar. Franklin invests in a collection of mutual funds, including the top-performing Mutual Shares ( TESIX). Another equity-heavy balanced fund is T. Rowe Price Balanced ( RPBAX), which has returned 3.5% annually during the past decade, outperforming 73% of competitors. The fund holds high-quality bonds and blue chips, such as Apple ( AAPL) and Johnson & Johnson ( JNJ).