Value-Able Funds Make 2000 Comeback

January 2, 2001 ( - Proving the value of portfolio diversification, value funds made a comeback in 2000, according to mutual fund tracker Lipper.

Small-cap and mid-cap value funds led the way, rising 17.67% and 16.96%, respectively. That compares with an annual loss of 1.62% for the average US diversified equity fund according to Reuters.

One of the more common 401(k) fund categories, funds that track the S&P 500, lost an average of 9.54% during the year.

The “Mighty” Fall

The nation’s largest mutual fund, Fidelity Magellan, lost 9.29%, while Vanguard’s 500 Index dropped 9.06%.

Last year’s star Janus Fund suffered from technology investments, slipping 14.91%.

Healthy Returns

Among specialty funds, health/biotech funds gained 54.89%, while natural resource funds gained nearly 30% (29.72%). Financial services funds rose 26.62%, and real estate sector funds gained 25.57%.

Taking it on the chin were technology funds, down 33.80% and telecommunications funds, down 35.07%, on average.

Large-company growth funds dropped 16.14%, while mid-cap growth funds fell 11.63%, according to Lipper.

Topping the list was the Schroder Micro Capital Growth Fund with a 147.70% advance. However, the fund closed to new investors in 1998.

Also reporting a healthy return was #2 Evergreen Health Care Fund, with a 117.57% return.