Large and Lagging Mutual Funds

Jonathan Clements of The Wall Street Journal provides a reality check for investors in underperforming mutual funds in this article appearing on Pittsburgh's post-gazette.com web site. Citing Morningstar, he says, "There are 126 stock funds with $1 billion or more in assets that have lagged behind their category average over the 10-year period through July 31.... These 126 funds collectively manage $438 billion, equal to 9 percent of all money invested in stock funds." As an example, he points to the Fidelity Magellan fund which has trailed the S&P 500 Index for seven of the past 10 years, and he mentions a dozen high profile mutual fund families with similar problem funds of their own.

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(May '04-Jun '05)