While most people agree that the best bang for your buck comes from index funds, sometimes you want to roll the dice a little and see if that hot shot mutual fund manager can get you a little better return than the market. Even though index funds are the best value, putting all your funds into one is just as bad as putting all your funds into one stock – you want some diversification on both a stock-bond level as well as a geographic level (and other levels).
Anyway, as is the case every year, Money Magazine put together a list of 70 actively managed mutual funds that they feel provide the best value for the investor on a variety of factors. They break the group up based on market capitalization for stocks, as well as groupings for bonds, international, and a specialty category (for things like real estate funds).
Don’t blindly invest in anything and definitely don’t invest in something just because you saw it in a list – just use this information as another factor in your decision on the funds you want to invest in.