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Hot Mutual Fund Categories that Have Turned Cold

Hot Mutual Fund Categories that Have Turned Cold

I received this morning a note from our long-time mutual fund contributing editor Stan Luxenberg. Here is what he has to say.

"Some promising categories have produced disappointing results in recent years. The poor performers include infrastructure funds: These funds began to appear during the financial crisis when many governments were increasing their spending on roads and bridges. But the funds have stumbled recently as many governments have cut back spending. Managed futures. After delivering solid returns in 2008, these attracted a spurt of assets. But since 2009, managed futures have lagged stocks badly. High-yield municipals. These were clobbered in the financial crisis, and now the long-term returns for the category are terrible. Absolute return: When stocks collapsed in 2011, these funds failed to provide protection."

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