![Royce Pennsylvania Mutual (<a href='//money.cnn.com/quote/mutualfund/mutualfund.html?symb=PENNX'>PENNX</a>)](https://i2.cdn.turner.com/money/galleries/2008/fortune/0806/gallery.Fortune40_mutual_funds.fortune/images/PENNX.gif)
1-year return: -7.9%
5-year return: 15.1%
Expense ratio: 0.88%
ETF alternative: Vanguard Small Cap Value (VBR)
For more diversification and growth, don't forget the munchkins (stocks, that is). Royce Pennsylvania Mutual, led by Chuck Royce himself, is a stellar choice. "There's a very experienced manager at the top who knows how to trade small-cap stocks in various cycles," says Morningstar senior fund analyst Bridget Hughes. The fund's 12% average annual return over 15 years puts it in the top third of its peers. The ETF alternative: Vanguard Small-Cap Value.
NEXT: Pimco All-Asset (PASDX)
Last updated June 20 2008: 2:34 PM ET