(MONEY Magazine) – When Jay Fisher earned a bachelor's degree in filmmaking at the University of California in 1984, he knew he was embarking on a financially precarious career. Indeed, after 2 1/2 years Fisher, 23, a bachelor, is still working only sporadically as a freelance assistant director in Los Angeles on feature films at $150 a day. Last year he worked an average of 12 days a month, earning a total of $21,600 for the year. Luckily, Fisher has a financial cushion -- $23,700 that he collected two years ago from a trust fund set up by his grandfather. Fisher, a regular reader of the stock pages since his high school days in Lynn, Mass., put the money into a grab bag of stocks and bonds that have increased in value only 3% during a time when Standard & Poor's 500-stock index gained 52.2%. More than half of Fisher's portfolio is in the John Hancock Bond Trust (no load; 800-225-5291), which holds government, municipal and corporate bonds. The fund recently yielded 8.6% and has been Fisher's best investment; the $12,900 he put in it is now worth $14,000, including reinvested dividends. Fisher has another 35% of his kitty in three growth stocks: 300 shares of Tiger International (recently traded on the New York Stock Exchange at $7.75 a share), an air-freight company; 300 shares of Perception Technology (over the counter, $19), a manufacturer of voice recognition and synthesizing devices used in toys and communications equipment; and 600 shares of Western Union (NYSE, $4). Tiger has appreciated 10.7% and Perception has dropped 8.3% since he bought it. Western Union has tumbled about 55%. In January 1986, Fisher used $4,000 from the sale of an earlier investment to buy 345 shares of Mattel (NYSE, $8.13), the nation's second largest toymaker, for his Individual Retirement Account for 1985 and 1986. Since then, Mattel stock has declined 30%. Says Fisher: ''I'd like to know how to get a higher . return on my investments.'' More than that, though, Fisher needs a coherent investment strategy that will give him steady income to supplement his unpredictable earnings. Financial planners consulted by Money suggest that he keep the bond fund shares but sell most of his stocks and put the bulk of the proceeds in safer, higher-yielding investments. ''Just because he's young doesn't mean he should be speculative,'' says Connie Chen, a financial planner in New York City. She advises him to invest about 20% of his portfolio in an oil and gas royalty trust. Income from these trusts, which are traded like stocks on major exchanges, is passed along to trust holders in monthly or quarterly checks. Chen is optimistic that a production agreement among OPEC ministers will push oil prices higher. She recommends Louisiana Land Royalty Trust (NYSE, $8.50), now yielding 15%, and Permian Basin Royalty Trust (NYSE, $5.75), yielding 11.5%. As oil and gas reserves held by a trust run out, usually six to 12 years after production begins, capital is gradually returned to the trust holder along with the income. Chen suggests reinvesting the principal in the John Hancock Bond Trust or another high-yield bond fund. If, as production falls, the yields drop to those of high-yield corporate bonds, now about 8%, she would sell the shares and put that money too into a similar fund.

A touch of growth Most advisers recommend that Fisher keep about a sixth of his portfolio in a growth investment, such as stocks or mutual funds. Chen suggests retaining at least 100 shares of the Perception Technology stock because she believes that it alone of Fisher's equity holdings has good long-term growth prospects, based on increasing demand for voice-activated equipment. Charles Battle, a financial planner in Aurora, Colo., prefers the conservatively managed Janus Fund (no load; 800-525-3713), a long-term growth portfolio that has appreciated at an average annual rate of 18% over the five years through Nov. 30. As for Fisher's IRA, the consensus of the advisers is that it is far too speculative. Battle would sell the Mattel shares and put the money in the top- performing Quest for Value Fund (no load; 800-862-7778), a maximum-capital- gains portfolio with a five-year compounded annual total return of 25.8%. Steven I. Feiertag, a financial planner in West Nyack, N.Y., suggests the Neuberger & Berman Manhattan Fund (no load; 800-922-3700), a maximum-capital- gains fund, with a five-year compounded annual return of 23.2%.

CHART: TEXT NOT AVAILABLE CREDIT: CHRISTOPH BLUMRICH CAPTION: NO CAPTION DESCRIPTION: Two pie charts show Jay Fisher's present holdings and recommended holdings.