Funds: "The Real Cost Is Trust"

That's where BW's Lauren Young sees the trading probes' real damage. Still, she says many are clean and worth investing in

If you want a mutual fund to hold for 10 or 20 years, the place to look is among the small-cap growth funds. Such is the suggestion of Lauren Young, personal-finance editor of BusinessWeek, who notes that small-cap growth has been leading the market as the economy moves into recovery. Young cautions, however, that if such funds get really big, they could morph into the midcap category, so investors should be alert to such changes. More broadly, she recommends looking for funds with low fees, low turnover, an experienced manager, and a defined style -- growth, value, or whatever.

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