Light at the End of the Tunnel?

Some fund managers are worried about valuations as 2002 kicks off. S&P says the best opportunities now are small- and mid-cap growth funds

Like many New Year's revelers, shareholders of the average domestic equity fund may be glad that 2001 is over. With the typical U.S. stock fund down nearly 11% last year, losses were widespread among domestic equity funds, ranging from a steep 21.6% average drop for large-cap growth funds to a modest 1.1% average decline for small-cap blend funds. Value clearly stood out last year, with the average small-cap value fund rising 13.7% and the average mid-cap value fund up 7.2%.

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