Return Of The Stock Pickers

Actively managed mutual funds are trouncing S&P index funds--and investor cash is pouring in

For most of 1999, mutual-fund watchers--BUSINESS WEEK included--wondered if the funds' best days were behind them. Most highly paid fund managers had trailed cheap-to-operate index funds for years. And cash inflows to equity funds had also been trending downward for several years as investors sought zippier performance in other ways, such as online trading.

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