Loyalty to Lagging Funds

Len Boselovic, staff writer, writes about the pitfalls of falling in love with poorly performing mutual funds in this article from the Post-Gazette. Using data provided by Lipper, a financial research firm, Boselovic identified 18 lagging funds, the three worst funds in six mutual fund categories, based on their performance for the 10-year period ended Aug. 31. He found that, "On average, they failed to break even over the 10 years. Still, investors have trusted the fund managers with $2.6 billion." Boselovic interviewed Tom Roseen, senior research analyst with Lipper, Russ Kinnel, director of fund research for Morningstar, Adam Bold, chief investment officer of the Mutual Fund Store, Paul Brahim, managing director of Equity Capital Management, and Fiduciary360 Chief Executive Officer Donald B. Trone to provide insight into investors' misplaced loyalty to these underperforming mutual funds.

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(May '04-Jun '05)