Mutual fund managers have been calling for a rebound in growth stocks for more than a year. With growth funds beating value -- finally -- in 2005, fund managers say the streak should continue well into 2006. "Our bet right now is on growth stocks," says Gina Sanchez, who oversees American Century Investments' Strategic Asset Allocation funds.
Growth funds, which focus on companies with strong earnings momentum, still have a long way to go to make up for years of losses. But investors who hold a good mix of funds -- growth, value, small-cap, large-cap -- have nothing to complain about. The average U.S. diversified fund rose 7.7% in 2005, beating the total return of 5.7% for the Standard & Poor's 500-stock index through Dec. 9.
http://www.businessweek.com/magazine/content/05_52/b3965464.htm
Growth funds, which focus on companies with strong earnings momentum, still have a long way to go to make up for years of losses. But investors who hold a good mix of funds -- growth, value, small-cap, large-cap -- have nothing to complain about. The average U.S. diversified fund rose 7.7% in 2005, beating the total return of 5.7% for the Standard & Poor's 500-stock index through Dec. 9.
http://www.businessweek.com/magazine/content/05_52/b3965464.htm
