Growth Loses Value, Value Grows

March 4, 2002 ( - Stock funds continued to suffer negative returns in February, with the average diversified US equity mutual fund falling about 2.9% during the month.

That loss, based on preliminary estimates from fund tracker Lipper, came on top of a loss of 1.83% for the average diversified US fund the prior month, according to Reuters.  The category lost an average of 10.9% in 2001.

Small Stuff

Small-cap value funds continued their winning ways – climbing 0.5% in February.  The sector soared 16.4% last year.

Meanwhile, growth funds continued to stumble, with large-cap growth funds dropping 4.5% in February on top of a 2.3% loss in January.  Mid-cap growth funds also fell in February – shedding about 5.5% for the month.

Failure to?

Telecommunications funds plunged 11.7% in February and have now racked up a 44.6% loss over the past twelve months.

On the other side, gold funds rose 10.4% in February in addition to January’s gain of 11.5%.  And, while not that many 401(k) investors will see that opportunity on their fund choices, the sector has earned an impressive 40.7% over the past 12 months.