Kiplinger

The Best and Worst Mutual Funds of the Market Correction

Experience is a wonderful teacher, which is how we know that many mushrooms are poisonous and that owls make lousy pets. Investors who lived through the September-to-December market correction also got to learn how their mutual funds fared in an abrupt downturn - and that's something worth knowing.

The Standard & Poor's 500-stock index tumbled 19.4% with reinvested dividends in 96 days from Sept. 20 through Dec. 24. The correction left few markets unscathed: The MSCI Europe, Australasia and Far East index tumbled 13.6%, and the Russell 2000 small-company stock index shed 26.1%.

Fortunately, the stock market roared back after its Christmas Eve low: At this writing, the S&P 500 is up 19.2% since Dec. 24, and for the round trip - from September peak to today - the blue-chip index is down just 3.9%.

What can we learn from this, aside from not selling in a panic? Some managers fare well in reducing losses in a correction; some excel at producing gains on the rebound; relatively few do well in both directions.

Here's a look at how diversified, actively managed mutual funds fared in the most recent market unpleasantness:

Stai leggendo un'anteprima, registrati per continuare a leggere.

Altro da Kiplinger

Kiplinger8 min letti
7 ESG ETFs to Buy for Responsible Profits
Investors are rapidly moving toward investing with environmental, social and corporate-governance (ESG) qualities in mind. Assets in ESG ETFs and other exchange-traded products (ETPs) grew by $7.6 billion, or 29.5%, in 2018. That growth rate is sever
Kiplinger4 min letti
A Surprising Way 2 Millennials Fast-Tracked Their Financial Progress
It doesn't take much Google searching to find out living in a high cost-of-living coastal city hurts the pocketbook. Whether it comes in the form of higher costs at the gas pump, more expensive groceries, or increasingly out-of-reach homes, living i
Kiplinger4 min letti
Retiring Early? Ways to Help Avoid Early Withdrawal Penalties on Retirement Accounts
Unless you're talking about retiring early, it's unlikely your financial professional will ever mention the possibility of using something called a "series of substantially equal periodic payments" -- or a 72(t) payment strategy -- to take penalty-fr