(MONEY Magazine) – Mutual fund investors uncomfortable with the aggressive pursuit of profit can learn a lesson from longtime clay court tennis ace Chris Evert: patience pays. A conservative mutual fund portfolio -- one that aims for a steady-going blend of capital growth and income, with low risk -- should emphasize stolid long- term growth funds, growth and income funds and, currently, a hefty amount of cash. Such a recipe might produce average annual returns of 10% to 14%, with the investor's income needs being satisfied by the portfolio's money- market and dividend-producing growth and income funds. ''The conservative investor isn't looking for the quick, spectacular gains,'' says Thurman Smith, editor of Equity Fund Outlook (P.O. Box 1040, Boston, Mass. 02117; $95 for 12 monthly issues). ''This investor wants to avoid interest-rate-sensitive holdings, such as long-term bond funds and high- risk stock funds.''

Thus about 35% of such a conservative portfolio should go into long-term growth funds that over a full market cycle -- usually four years or so -- will produce index-beating total returns and do so with moderate risk. Some candidates that fund authorities frequently mention are Acorn Fund, up 16.6% for the 12 months to July 1 (312-621-0630); Fidelity Contrafund, up 26.5% (800-544-6666, 617-523-1919 in Massachusetts); Phoenix Growth, up 20.4% (800-243-4361, 203-278-8050 in Connecticut); and Twentieth Century Select, up 17.9% (800-345-2021, 816-531-5575 in Missouri). Another 25% of the portfolio should go into more conservative growth and income funds. Growth and income funds tend to put money into established, dividend-paying companies that are considered safer investments than the capital-gains-oriented stocks of upstart outfits. James Stack, editor of InvesTech Mutual Fund Advisor (522 Crestview Dr., Kalispell, Mont. 59901; $150 a year for 18 issues), offers a tip for picking growth and income funds. Says Stack: ''If the fund's yield isn't above 2%, it could mean that the fund isn't invested in blue-chip stocks. That should be a concern in today's toppy market.'' Some growth and income funds favored by newsletter editors: Babson Value, up 30%, yielding 3% (800-821-5591, 816-471-5200 in Missouri); Mutual Shares Corp., up 20.5%, yielding 2.3% (800-553-3014, 212-908-4047 in New York); Selected American Shares, up 16.2%, yielding 2.6% (800-621-7321, 800-572-4437 in Illinois); and T. Rowe Price Growth & Income, up 13.8%, yielding 5.1% (800-638-5660, 301-547-2308 in Maryland). To defend against market slides, 30% of the portfolio should be in money- market funds (see the articles on pages 107 and 113). The remaining 10% should be an international play. A curious choice for a conservative portfolio? Says Bert Dohmen, editor of Wellington's Worryfree Investing (733 Bishop St., Honolulu, Hawaii 96813; $129 a year): ''It's a fallacy that diversified, multicountry international funds are riskier than domestic funds. Most of the international funds invest in large companies with high liquidity.'' Some excellent options: Fidelity Overseas, up 49.8% (800-544-6666, 617-523-1919 in Massachusetts); Financial Strategic-Pacific Basin, up 69.8% (800-525-8085, 800-525-9769 in Colorado); T. Rowe Price International, up 47.9% (800-638-5660, 301-547-2308 in Maryland); and Vanguard World-International Growth, up 33.8% (800-662-7447). Investors who are unsure about international markets can let a Stateside portfolio manager call the shots. Some U.S. growth funds have the option to invest overseas. One such fund, T. Rowe Price Growth Stock, up 21.5% (800-638-5660, 301-547-2308 in Maryland), currently has 18% of its assets in foreign shares.

CHART: TEXT NOT AVAILABLE CREDIT: NO CREDIT CAPTION: SERVING UP A CONSERVATIVE STRATEGY DESCRIPTION: Examples of where to invest for a 35% growth, 30% cash, 25% growth and income and 10% international portfolio.