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Investing January 2, 2001
Value-Able Funds Make 2000 Comeback
January 2, 2001 (PLANSPONSOR.com) - Proving the
value of portfolio diversification, value funds made a
comeback in 2000, according to mutual fund tracker
Lipper.
Reported by Nevin E. Adams
Small-cap and mid-cap value funds led the way, rising 17.67% and 16.96%, respectively. That compares with an annual loss of 1.62% for the average US diversified equity fund according to Reuters.
One of the more common 401(k) fund categories, funds that track the S&P 500, lost an average of 9.54% during the year.
The “Mighty” Fall
The nation’s largest mutual fund, Fidelity Magellan, lost 9.29%, while Vanguard’s 500 Index dropped 9.06%.
Last year’s star Janus Fund suffered from technology investments, slipping 14.91%.
Healthy Returns
Among specialty funds, health/biotech funds gained 54.89%, while natural resource funds gained nearly 30% (29.72%). Financial services funds rose 26.62%, and real estate sector funds gained 25.57%.
Taking it on the chin were technology funds, down 33.80% and telecommunications funds, down 35.07%, on average.
Large-company growth funds dropped 16.14%, while mid-cap growth funds fell 11.63%, according to Lipper.
Topping the list was the Schroder Micro Capital Growth Fund with a 147.70% advance. However, the fund closed to new investors in 1998.
Also reporting a healthy return was #2 Evergreen Health Care Fund, with a 117.57% return.