Although exchange-traded funds have stolen the limelight of late, mutual funds have not lost their relevancy to individual investors.

Mutual funds offer a cost-effective way to construct a diversified portfolio across a wide range of asset types. Mutual funds are liquid investments managed by professionals. Investors can opt to select funds that mirror index funds or actively managed funds that require a manager to make specific investment decisions.

Traditional open-ended mutual funds still have an important place in many investors’ portfolios, and the need for quality information to judge and track these funds is ongoing. Many Web sites now provide current and historical performance data on funds, but it’s rare to find a source where you can easily compare similar funds on various criteria. AAII’s annual “Individual Investor’s Guide to the Top Mutual Funds” does just that in the following pages.

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The 29th edition of the Guide to the Top Mutual Funds covers over 700 no-load and low-load funds. The funds are classified into useful categories of similar funds to make comparison of fund alternatives more efficient and effective. This will allow you to dedicate more time to evaluating the better fund opportunities.

How to Use This Guide

Selecting a mutual fund, while less time-consuming than investing in individual securities, does require some homework. No one should put money into an investment that is not understood. This does not require a detailed investigation of the fund’s investments, but it does require an understanding of the fund’s investment objective, strategy, risks and performance history.

Individuals new to mutual fund investing can find explanatory articles in the Mutual Funds area of AAII.com .

Performance tables appear on pages 6 through 9. Table 1 summarizes the average performance and risk of fund categories and common index benchmarks. Table 2 lists the 50 best-performing funds of 2009, and Table 3 lists the 50 worst-performing funds of 2009. Table 4 allows you to compare the performance of the 50 most widely held funds (funds with the highest total assets). While past performance is no indication of future performance, it may attest to the quality and consistency of fund management.

Funds are grouped by category and listed alphabetically within each category; the ticker symbol is indicated after each fund name. The listings provide information on a variety of return and risk data, portfolio composition, and fees and expenses. Index funds are indicated by the letter “I” before the fund name, and funds that are closed to new investors are indicated by the letter “C.”

If you would like to request a copy of a fund prospectus and annual report, telephone numbers and Web addresses of the fund families are provided on pages 38 through 40. Make sure you read the prospectus carefully before investing in any mutual fund.

Which Funds Were Included

The funds that appear in the Guide were selected from the universe of open-ended funds tracked through NASDAQ. The following are the various screens we used to arrive at the final selection.

Historical Record

Generally, only those funds with three full years of data are included in the Guide so that there is a performance record of significant length and all performance measures can be calculated. Index funds with less than three full years may be included, as well as specialty funds of great interest to our members.

Size

Funds must appear in the NASDAQ mutual fund listings and are generally required to have at least $50 million in assets to qualify for inclusion in the Guide. A small number of funds with assets below $50 million are included in the state-specific municipal bond category and some of the new categories tracked in this Guide.

Loads

The decision as to what constitutes a significant load is difficult, but we took this approach in the Guide:

Funds with front-end loads, back-end loads, or redemption fees of 3% or less are included if the fund does not also have a 12b-1 charge. Funds with redemption fees that disappear after six months that also have 12b-1 charges appear in this Guide.

Funds with 12b-1 plans and no front- or back-end loads are included in the Guide; we note, however, if the fund has a 12b-1 fee and what the charge is per year. A 12b-1 fee of greater than 0.25% is considered to be high and excluded the fund from the Guide. Investors should carefully assess these plans individually.

Funds that imposed a load that exceeded 3% or increased an existing load above 3% have been dropped from the Guide.

Expenses

Funds with significantly higher expense ratios than the average for their category are not included in this Guide. We have bolded the expense ratio of funds whose ratios are in the lower 25% of their category.

Performance

Funds that significantly underperformed the average performance of their category are not included in this Guide.

Interest and Availability

Only those funds that are of general interest to mutual fund investors and available for investment by individual investors directly from the fund, without restrictions, are included in this Guide. Unlike previous editions, funds closed to new investors are now included. Such funds are designated by the letter C to the left of their name.

Funds Not Included

AAII members who would like performance figures for no-load and low-load mutual funds that do not appear in this Guide can access this information on our Web site at www.aaii.com/guides/mfguide (covers 1,476 funds).

A Key to Terms and Statistics

Most of the information shown in the listing is provided by Morningstar Inc., but some may come from mutual fund reports (the prospectus and annual and quarterly reports) and solicitation of information directly from the fund. Any data source has the potential for error, however, and before investing in any mutual fund, you should read the prospectus and the annual report.

When a dash appears in the performance tables or in a mutual fund listing, it indicates that the number was not available or does not apply in that particular instance. For example, the 10-year annual return figure would not be available for funds that have been operating for less than 10 years. We do not compile the bull and bear ratings for mutual funds not operating during the entire bull or bear market period. All numbers are truncated rather than rounded when necessary, unless noted otherwise in the following descriptions.

In the fund list, return and difference from category numbers that are in the top 25% of all funds within the investment category are shown in boldface. When risk and expense ratios are in the lowest 25% for the category, these numbers are also bolded. Fund data in the state-specific municipal bond category are not bolded because meaningful comparisons cannot be made across various state categories.

The following provides an explanation of the terms we have used in the performance tables and mutual fund listings. The explanations are listed in the order in which the data and information appear in the listing.

Index Fund: The letter I before a fund’s name indicates that the fund is designed to follow a stock index, such as the S&P 500; the amounts invested in each stock are proportional to the firm’s representation in the index that the fund tracks. Because index funds are unmanaged, they make no research efforts to select particular stocks or bonds, nor do they make timing decisions. They are always 100% invested. This passive management approach means that the expenses and the cost of managing an index fund are extremely low.

Closed: The letter C before the fund’s name indicates that the fund is not accepting purchases from new investors. Some closed funds may also suspend additional investments from existing shareholders.

Fund Name: The funds are presented alphabetically by fund name within each category.

Ticker: The ticker symbol for each fund is given in parentheses for those investors who may want to access data with their computer or touch-tone phone. The ticker is four letters and is usually followed by an “X,” indicating that it is a mutual fund. For example, the large-cap Brandywine Blue fund ticker symbol is BLUEX.

Style—Growth and Value: Indicates fund investment style. G = growth investing focus, V = value investing focus. For more on what these classifications mean, see the online version of this Guide at www.aaii.com/guides/mfguide.

Annual Total Return (%): Return percentages for each of the last five years. Returns that are in the top 25% of all funds within the investment category are shown in boldface.

Bull Market Return (%)—Fund and Cat +/-: Reflects the fund’s performance in the most recent bull market, starting March 1, 2009, and continuing through December 31, 2009; and the difference in fund total return for the period from the average return for the period for all funds in the same category. Return and difference from category numbers that are in the top 25% of all funds within the investment category are shown in boldface.

Bear Market Return (%)—Fund and Cat +/-: Reflects the fund’s performance in the most recent bear market, from November 1, 2007, through February 28, 2009; and the difference in fund total return for the period from the average return for the period for all funds in the same category. Return and difference from category numbers that are in the top 25% of all funds within the investment category are shown in boldface.

3-Year Return (%)—Fund and Cat +/-: Assuming an investment on January 1, 2007, the annual total compound return if held through December 31, 2009; and the difference in fund total return for the period from the average return for the period for all funds in the same category. When the difference from category is negative, the fund underperformed the average fund in its investment category for the period by the percent indicated. Return and difference from category numbers that are in the top 25% of all funds within the investment category are shown in boldface.

5-Year Return (%)—Fund and Cat +/-: Assuming an investment on January 1, 2005, the annual total compound return if held through December 31, 2009; and the difference in fund total return for the period from the average return for the period for all funds in the same category. Return and difference from category numbers that are in the top 25% of all funds within the investment category are shown in boldface.

10-Year Return (%)—Fund and Cat +/-: Assuming an investment on January 1, 2000, the annual total compound return if held through December 31, 2009; and the difference in fund total return for the period from the average return for the period for all funds in the same category. Return and difference from category numbers that are in the top 25% of all funds within the investment category are shown in boldface.

Yield (%): The per share annual income distribution made by the fund divided by the sum of the year-ending net asset value plus any capital gains distributions made during the year. This ratio is similar to a dividend yield and would be higher for income-oriented funds and lower for growth-oriented funds. The figure only reflects income; it is not a total return. For some funds, the yield may be distorted if the fund reports short-term capital gains as income.

Tax-Cost Ratio (%): Measures how much a fund’s annualized return is reduced by the taxes paid on distributions, assuming the maximum marginal tax rate. A tax-cost ratio of 0.0% indicates that the fund did not pay any taxable income or make capital gains distributions. If a fund had a 3.0% tax-cost ratio, it means that on average each year, investors lost 3.0% of their assets to taxes. The lower the ratio, the more tax-efficient the fund. The ratio is calculated using the last five years of data.

Risk Index—Category and Total: The Category Risk Index is the standard deviation of a fund’s return divided by the standard deviation of return for the average fund in the category. The Total Risk Index is the standard deviation of a fund’s return divided by the average standard deviation of return for all funds. Standard deviation is a measure of return volatility and is computed using monthly returns for the last three years. A value of 1.00 denotes average risk. Values above 1.00 indicate greater risk than average while values below 1.00 indicate less risk than average. Risk numbers that are in the lowest 25% of all funds within the investment category are shown in boldface.

Total Assets ($ Mil): Aggregate fund value in millions of dollars at the end of the calendar year.

Portfolio (%)—Stock/Bond/Other/Cash: The portfolio composition columns classify investments by type and give the percentage of the total portfolio invested in each. Some funds are “funds of funds” and their portfolio holdings may be denoted by “100% other.” Due to rounding of the percentages and the practice of leverage (borrowing) to buy securities, the portfolio total percentage may not equal 100%.

Percent of Port in Foreign Issues: The percentage of the fund’s assets that is invested in foreign stocks and bonds.

Portfolio Turnover Ratio (%): A measure of the trading activity of the fund, which is computed by dividing the lesser of purchases or sales for the year by the monthly average value of the securities owned by the fund during the year. Securities with maturities of less than one year are excluded from the calculation. The result is expressed as a percentage, with 100% implying a complete turnover within one year.

Number of Holdings: The total number of individual securities held by the fund. These can include stocks, bonds, currencies, futures contracts and option contracts. This figure is meant to be a measure of portfolio risk: The lower the number, the more concentrated the fund is in a few issues.

Percent of Portfolio in Top 10 Holdings: Investments, expressed as a percentage of the total portfolio assets, in the fund’s top 10 portfolio holdings. The higher the percentage, the more concentrated the fund is in a few companies or issues, and the more the fund is susceptible to market fluctuations in these few holdings. Used in combination with number of holdings, the percent of portfolio in top 10 investments figure can indicate how concentrated a fund is.

Expense Ratio (%): The sum of administrative fees plus adviser management fees and 12b-1 fees divided by the average net asset value of the fund, stated as a percentage. Brokerage costs incurred by the fund are not included in the expense ratio but are instead reflected directly in net asset value. Front-end loads, back-end loads, redemption fees, and account activity charges are not included in this ratio. Some funds are “funds of funds” and their expense ratios will not reflect the expenses of all funds held by the fund. Expense ratios that are in the lowest 25% of all funds within the investment category are shown in boldface.

Max Load (%): Percentage maximum fee. The letter next to the fee indicates the load type: F = a front-end load (a sales charge incurred upon purchase), and R = a redemption fee that is incurred at the time of sale. A — = no loads or charges. Returns are not adjusted for loads, redemption fees or charges.

12b-1 Fee (%): If a fund has a 12b-1 fee, the percentage that the fund charges is given. A — = no 12b-1 fee is charged.

Performance Tables

Table 1. Performance of Category Averages and Index Benchmarks

Category		Annual Total Return (%)					Total Return (%)		Annual Total Return (%)			Yield (%)	Total Risk Index	Exp
		Annual Total Return (%)					Total Return (%)		Annual Total Return (%)					Ratio
		2009	2008	2007	2006	2005	Bull	Bear	3-Yr	5-Yr	10-Yr			(%)
Stk-LC	Large-Cap Stock	32	-38.6	8.4	12.9	6.5	57.4	-50.7	-4.7	0.8	0.5	1	1.09	0.98
Stk-MC	Mid-Cap Stock	36	-40	9.9	13.4	10.2	59.7	-51.3	-4.1	1.8	3.5	0.5	1.19	1.13
Stk-SC	Small-Cap Stock	36.1	-38.8	2.4	14.4	7.1	66.7	-53.3	-5.6	0.7	5.2	0.2	1.29	1.39
LS	Long-Short	3.5	-12.4	9.1	9.6	4.5	6.9	-14.7	-1	2.4	3.6	0.8	0.56	1.91
Contra	Contra Market	-34.7	30.7	-5.6	-8.1	-2.4	-45.2	72.1	-10.2	-6.3	-2.9	0.2	1.46	1.72
Sec-E	Energy/Resources Sector	52.8	-53.5	42.9	13.7	41	72.8	-57.9	-0.9	10.3	12	0.7	1.81	1.18
Sec-F	Financial/Banking Sector	22.8	-45.9	-10.1	15.1	6.7	67.9	-62.9	-16.7	-7.6	2	1.3	1.45	1.15
Sec-G	Gold Sector	59.1	-37.4	23.7	33.1	33.3	61.6	-43.6	6.2	16.1	17.8	1	2.38	1.31
Sec-H	Health Sector	28.5	-26	11.3	3.5	14.2	44	-35.6	1.5	4.3	6.6	0.4	1	1
Sec-R	Real Estate Sector	35.8	-44.2	-13.2	32.2	12.2	96.8	-66.3	-13.8	-1.2	10.7	2.8	1.91	1.09
Sec-T	Technology Sector	62.4	-46.3	16.1	9.9	6	76.3	-54.4	0.2	3.2	-6.8	0	1.34	1.44
Sec-TC	Telecommunications Sector	44.5	-44.2	13.4	23	6.8	59.7	-53.7	-3.6	3	-1	1.1	1.32	1.18
Sec-U	Utilities Sector	15.2	-32.9	15.6	25.9	12.8	34.6	-43.2	-3.8	4.7	2.1	4	0.95	1.1
Sec-M	Miscellaneous Sector	40.7	-37.5	8.6	15.4	5.9	74.9	-52.2	-2.9	2.2	4.6	0.8	1.38	1.14
IntS-Glb	Global Stock	33.9	-40.6	12.8	20	13.1	57.4	-51.8	-4	3.4	3.5	0.8	1.15	1.41
IntS-F	Foreign Stock	38	-45.9	12.5	25.9	18.3	67.5	-58.6	-5.9	4.4	2.4	1.8	1.32	1.18
IntS-R/C	Regional/Country Stock	56.5	-50	26.8	26.7	28.2	89.4	-61.5	-2.4	7.4	4.9	1.2	1.62	1.35
IntS-E	Emerging Stock	80	-59.5	40.3	33.8	34.7	112.5	-67.5	-1	13.4	9.5	0.6	1.86	1.57
Bal	Balanced: Domestic	22.1	-23.4	7	11	5.6	35	-32	-0.2	3	4	2	0.68	0.95
Bal-Glb	Balanced: Global	24.6	-27.4	9.1	11.5	7	40.6	-37	-0.6	2.9	2.8	3.4	0.85	1
TD2000	Target Date: 2000-2014	18.4	-19.3	6.6	9.3	4.5	28	-26.9	0.9	3.4	3.1	2.7	0.52	0.51
TD2015	Target Date: 2015-2029	25.7	-29.1	7	12.5	6.4	42.3	-39.6	-1.6	2.7	0.6	2	0.81	0.67
TD2030	Target Date: 2030+	31.4	-36	7.6	14.8	7.9	53.6	-48.1	-3.3	2.3	0.8	1.5	1.02	0.67
B-CHY	Corp High-Yield Bond	39.6	-20.8	2.5	9.6	2.2	37	-20.4	4	4.6	5.2	6.9	0.68	0.97
B-Cnvt	Convertible Bond	38	-29.3	8.9	13.2	4.9	45.7	-34.1	1.3	4.3	3.9	3.4	0.85	1.07
B-MB	Mortgage-Backed Bond	6.8	1.2	5.9	4.2	2.4	6.5	3.4	4.5	4	5.1	4.5	0.18	0.7
B-GvST	Gov’t: Short-Term Bond	1.6	4.9	6.3	3.8	1.6	1.8	6.5	4.2	3.5	4.3	2	0.1	0.56
B-GvIT	Gov’t: Interm-Term Bond	1	9.6	7.8	3.4	2.1	2.6	10.7	6	4.7	5.8	3.3	0.24	0.6
B-GvLT	Gov’t: Long-Term Bond	-18	30.7	10.4	-0.3	8.5	-6.6	20	5.5	4.4	7.4	3.2	0.86	0.83
B-IP	Inflation-Protected Bond	11	-2.5	10.7	0	2.3	12.1	0	6.2	4.2	7.3	1.2	0.45	0.52
B-GenST	General Bond: Short	10.2	-5.6	4.2	4.6	2	10	-4.7	2.5	2.7	4.2	4	0.21	0.64
B-GenIT	General Bond: Interm	13.4	-2.4	5	4.6	2.1	14.2	-2	5	4.3	5.8	4.5	0.27	0.66
B-GenLT	General Bond: Long	15.5	-2.8	4.6	4.1	1.5	18.7	-4.7	5.2	4.2	6.9	5.1	0.44	0.86
B-MNST	Muni Nat’l: Short-Term	4.5	1.3	3.6	3.3	1.6	2.9	3.6	3	2.8	3.5	2.5	0.1	0.56
B-MNIT	Muni Nat’l: Interm-Term	11	-1.6	3.2	3.7	1.9	7.3	2.5	4	3.5	4.7	3.6	0.25	0.61
B-MNLT	Muni Nat’l: Long-Term	14.9	-5.4	2.3	4.7	3.4	9.8	-0.5	3.5	3.7	5.3	4.2	0.33	0.57
B-MHY	Muni Nat’l: High-Yield	27.4	-20.5	-1	6.9	5.5	18.8	-16	0	2.4	4.5	5.3	0.53	0.65
IntB-Gen	Int’l Bond: General	12.4	-0.4	7.3	5.5	-3.3	17.8	-3.9	6.1	4	5.9	4.1	0.42	0.9
IntB-E	Int’l Bond: Emerging	32.1	-16.7	6	11.4	12.8	34.6	-19.1	5.2	7.9	11.7	5.8	0.73	1.05
IntB-C	Int’l Bond: Currency	1.7	-3.9	8.4	6.9	—	6.5	-5.8	1.7	—	—	0.1	0.6	1.5
Index Benchmarks
	DJ Industrial Average	22.7	-31.9	8.9	19.1	1.7	51.3	-47.1	-3.1	2	1.3	—	0.94	—
	S&P 500	26.5	-37	5.5	15.8	4.9	54.5	-50.9	-5.6	0.4	-1	—	1.01	—
	S&P MidCap 400	37.5	-36.5	7.7	10	12.3	64.2	-49.5	-2	3.1	6.1	—	1.21	—
	S&P SmallCap 600	25.6	-31.1	-0.3	15.1	7.7	63.4	-51.3	-4.8	1.4	6.4	—	1.27	—
	MSCI EAFE	32.5	-43.1	11.6	26.9	14	63.5	-56.3	-5.6	4	1.6	—	1.22	—
	MSCI Europe	36.8	-46.1	14.4	34.4	9.9	71	-58.9	-5.5	4.5	2.4	—	1.31	—
	MSCI Far East	12.8	-32.3	0.3	8.9	24.2	36.2	-47	-8.5	0.7	-2.6	—	1.01	—
	MSCI Pacific	24.3	-36.2	5.6	12.5	23	50	-50.6	-5.7	3	-0.3	—	1.09	—
	ML US Corp Bond	19.8	-6.8	4.7	4.4	2	21.3	-7.2	5.3	4.5	6.6	—	0.45	—
	ML High Yield Bond	56.3	-26.2	2.2	11.6	2.8	53.6	-26.2	5.6	6.2	6.8	—	0.86	—
	BarCap GNMA	5.4	7.9	7	4.6	3.2	4.8	10.7	6.7	5.6	6.3	—	0.17	—
	BarCap US Gov’t 1-3 Yr	1.4	6.7	7.1	4.1	1.7	1.6	8.4	5	4.2	4.7	—	0.09	—
	BarCap US Gov’t Interm	-0.3	10.4	8.5	3.8	1.7	1.1	11.8	6.1	4.7	5.7	—	0.19	—
	BarCap US Gov’t Long	-12.2	22.7	9.7	2.1	6.6	-3.2	16	5.7	5.2	7.7	—	0.64	—
	BarCap US Bond Market	5.9	5.2	7	4.3	2.4	7.2	6	6	5	6.3	—	0.21	—
	BarCap Municipal Bond	12.9	-2.5	3.4	4.8	3.5	8.3	2.5	4.4	4.3	5.8	—	0.3	—
	Treasury Bills	0.2	1.4	4.4	4.9	3.3	0.1	1.9	2	2.8	2.7	—	0.03	—

Table 2. Top 50 Performers for 2009

Closed	Category	Fund (Ticker)	Annual Total Return (%)					Total Return (%)		Annual Total Return (%)			Total Risk Index
								Total Return (%)						Exp
								Bull	Bear					Ratio
			2009	2008	2007	2006	2005	Mrkt	Mrkt	3-Yr	5-Yr	10-Yr		(%)
	IntS-R/C	T. Rowe Price Em EurMedi (TREMX)	125.1	-75.9	27.9	34.7	59	167.2	-78.4	-11.4	8.3	?	2.26	1.98
	Sec-M	Fidelity Sel Automotive (FSAVX)	122.2	-61.3	0	13.3	-1.8	213.8	-77.4	-4.9	-0.9	4.6	2.61	1.15
	IntS-R/C	T. Rowe Price Latin Amer (PRLAX)	114.3	-55.8	48.9	51.2	60	133.1	-61.6	12.2	27.9	18.4	1.92	1.22
	IntS-R/C	T. Rowe Price New Asia (PRASX)	102.7	-61	66.3	36.1	26.4	128.7	-67.5	9.5	17.7	8.8	1.98	0.96
	IntS-R/C	Metzler/Payden EuroEmMkts (MPYMX)	101.3	-66.6	28.4	46.2	37.9	164.3	-75	-4.7	11.8	—	2.13	1.48
	IntS-R/C	Matthews India (MINDX)	97.2	-62.4	64.1	36.4	—	140.6	-66.2	6.8	—	—	2.16	1.29
	IntS-R/C	Guinness Atkinson Chin&HK (ICHKX)	92.7	-54.5	65	39.6	6.6	121	-66.7	13.1	16.6	9.5	1.91	1.53
	IntS-R/C	Fidelity Latin America (FLATX)	91.5	-54.7	43.7	44.3	55.1	103.8	-59.6	7.7	22.8	14.9	1.83	1.07
	Sec-T	Fidelity Sel Technology (FSPTX)	90.2	-51.1	19.7	7.5	4.9	103.3	-59.2	3.6	4.6	-5.4	1.58	0.9
	IntS-E	Bernstein Emerging Mkts (SNEMX)	87.4	-56.6	34	28.8	28.7	112.4	-64.7	2.9	12.6	12.3	1.7	1.51
	Sec-G	Tocqueville Gold (TGLDX)	86.5	-35	12.4	39.2	30	74.8	-37.6	10.9	19.8	21.7	2.17	1.44
	IntS-E	T. Rowe Price Emg Mkt St (PRMSX)	85	-60.6	42.9	32	38.7	117	-68.1	1.4	13.8	9.3	1.88	1.24
	Sec-T	Fidelity Sel Electronics (FSELX)	84.9	-49.9	4.6	0.3	15.7	98.2	-57.1	-1	2.4	-4.9	1.53	0.89
	Sec-T	Fidelity Sel Computers (FDCPX)	83.1	-48.6	22.4	9.4	2.6	94.4	-55.6	4.9	5.3	-4.9	1.45	0.92
C	Stk-LC	Vanguard Capital Value (VCVLX)	81.4	-48.9	-7.7	18.9	4.2	118.1	-62.7	-5	1.2	—	1.56	0.52
	Sec-TC	Fidelity Sel Comm Equip (FSDCX)	80.6	-48.5	9.7	2.2	3.5	94.1	-58.4	0.7	1.5	-6.7	1.63	0.95
	Sec-T	T. Rowe Price Glob Tech (PRGTX)	80.2	-44.1	13.4	10	10.9	93.9	-52.9	4.6	6.9	—	1.4	1.32
	Sec-E	Fidelity Sel Materials (FSDPX)	78.6	-47.6	29.2	19.4	14.3	96.7	-53.7	6.5	10.5	11.2	1.56	0.9
	IntS-R/C	Matthews China (MCHFX)	78.3	-49	70.1	64.8	6.9	98	-60	15.7	22.2	17.1	1.74	1.23
	IntS-F	Janus Overseas J (JAOSX)	78.1	-52.8	27.7	47.2	32.3	91.5	-58.7	2.4	15.9	4.9	1.62	0.9
	Sec-G	Vanguard Prec Mtls Mining (VGPMX)	76.4	-56.1	36.1	34.3	43.7	102.7	-64	1.8	15.3	17.7	2.1	0.39
	IntS-E	Fidelity Emerging Market (FEMKX)	76	-60.9	45	33.3	44.3	103.7	-68.1	0	13.9	7.9	1.81	1.16
	IntS-E	Vanguard Em Mkt Idx (VEIEX)	75.9	-52.9	38.9	29.3	32	104	-62.7	4.8	14.5	9.8	1.69	0.39
	IntS-R/C	Matthews Pacific Tiger (MAPTX)	75.3	-46.2	33.6	27.2	22.5	108.3	-58	8.1	14.5	11.5	1.63	1.12
	IntS-F	Wasatch International Opp (WAIOX)	75	-54.8	15.1	31.5	—	102.8	-65.4	-3.1	—	—	1.54	2.25
	IntS-E	Northern Mlt-Mgr EmgMktEq (NMMEX)	75	—	—	—	—	102.2	—	—	—	—	1.48	1.5
	IntS-E	USAA Emerging Markets (USEMX)	74.8	-51.7	33.6	29.3	25.5	100.3	-60.3	4.1	12.9	7.9	1.61	1.79
	IntS-E	Northern Emerging Mkts Eq (NOEMX)	72.8	-53.1	36.5	—	—	99.6	-62.8	3.4	—	—	1.66	0.76
	B-CHY	Fidelity Capital & Inc (FAGIX)	72.1	-31.9	3.7	13	5	71.5	-33.2	6.7	7.6	6.8	0.92	0.75
	IntS-E	SSgA Emerg Markets Instl (SSEMX)	70.2	-56.4	40.9	33.4	37.2	95.9	-65.5	1.5	13.9	9.4	1.7	1.23
	IntS-E	Driehaus Emerg Mkts Grth (DREGX)	70	-54.5	42.3	41.2	38.9	94.9	-62.3	3.3	16.7	12	1.58	1.77
C	IntS-E	Lazard Emrg Mkt Eq Open (LZOEX)	69.1	-48.1	32.7	29.9	41.3	97.1	-57.2	5.2	16.4	11.2	1.57	1.54
	Sec-TC	T. Rowe Price Med & Tele (PRMTX)	68.5	-46.5	21.8	28.5	18.1	83.8	-53.9	3.2	10.7	5	1.39	0.9
	Sec-E	US Global Inv Glob Res (PSPFX)	68.2	-62.2	39.9	22.1	48.9	77	-65.2	-3.8	10.1	16.8	1.87	1.51
	Sec-T	T. Rowe Price SciTech (PRSCX)	67.8	-43.8	11.8	7.1	2.4	76.9	-51.6	1.8	2.9	-8.6	1.36	1
	IntS-F	Oakmark Intl Small Cap I (OAKEX)	67.4	-45.8	-8.4	34.9	21.2	99.2	-60	-5.9	6.3	10.1	1.48	1.41
	Stk-MC	Aston/Optimum Mid Cap N (CHTTX)	66.1	-42.9	12.9	20.9	1.3	96.6	-54.4	2.3	5.6	10.3	1.41	1.16
	IntS-R/C	Fidelity China Region (FHKCX)	65.5	-44.9	46.2	29.6	14.4	83.9	-57.1	10.1	14.6	7.2	1.61	1.12
	Sec-M	Fidelity Sel Chemicals (FSCHX)	65.3	-43.4	28.4	16.8	1.1	78.7	-48.6	6.3	7.2	10.3	1.38	0.91
	Stk-SC	Dreyfus Small Co Value (DSCVX)	64.3	-32	4.9	5	7.1	87.4	-44	5.4	5.7	8.2	1.36	1.38
	B-Cnvt	Fidelity Convertible Sec (FCVSX)	64.1	-47.8	16.2	15.1	5.9	78.9	-54.1	-0.2	3.9	4.7	1.38	0.78
	Stk-MC	Ariel (ARGFX)	63.4	-48.3	-1.7	10.3	0.9	120.3	-64.3	-6	-1.6	7.2	1.73	1.07
	IntS-E	Harding Loevner Emrg Mkt (HLEMX)	63.4	-52.4	35.9	28.7	38.6	90.9	-61.2	1.9	13.5	11.7	1.59	1.64
	Sec-E	Guinness Atkinson Glbl Enrgy (GAGEX)	63.2	-48.6	37.2	9.8	63.9	83.5	-52.9	4.8	15.7	—	1.74	1.31
	Stk-MC	Ariel Appreciation (CAAPX)	62.9	-40.8	-1.4	10.9	2.9	100.2	-55.1	-1.7	1.6	7.1	1.45	1.19
	Stk-LC	Yacktman Focused (YAFFX)	62.7	-23.5	3.4	16.1	-1.9	97.4	-38.3	8.8	8	11.8	1.22	1.25
	Stk-SC	Fidelity Small Cap Stock (FSLCX)	62.6	-43	7.7	12.3	8	98	-55.9	0	3.9	7.3	1.45	0.96
	Sec-G	USAA Prec Metals&Min (USAGX)	62.4	-24.6	27.6	43.1	39.2	63	-30.5	16	25.5	24.4	2.4	1.31
	Stk-LC	Fidelity OTC (FOCPX)	62.2	-46	26.1	9.4	8.9	75.4	-53.5	3.4	5.6	-1.9	1.32	1.13
	Stk-SC	Royce Opportunity Invt (RYPNX)	62.1	-45.8	-2	18.7	4.7	109.5	-61.8	-4.9	1.4	9.7	1.68	1.23

Table 3. Bottom 50 Performers for 2009

Closed	Category	Fund (Ticker)	Annual Total Return (%)					Total Return (%)		Annual Total Return (%)			Total Risk Index
								Total Return (%)						Exp
								Bull	Bear					Ratio
			2009	2008	2007	2006	2005	Mrkt	Mrkt	3-Yr	5-Yr	10-Yr		(%)
	Contra	ProFunds UltraSh Emkt Inv (UVPIX)	-77.2	13.6	-61.4	—	—	-79.3	36.4	-53.6	—	—	2.46	1.73
	Contra	ProFunds UltraSh NSDQ-100 Inv (USPIX)	-67	80.7	-27.7	-8	-1.2	-69.6	122.6	-24.4	-17.1	-16.9	2.22	1.67
	Contra	ProFunds Short RealEst Inv (SRPIX)	-51.9	-5.3	23.7	-22	—	-63.9	44.3	-17.4	—	—	2	1.68
	Contra	Rydex InvS&P500 2xStrgyH (RYTPX)	-50.6	66.1	-4	-17.5	-4.6	-64.6	156.3	-7.6	-9.1	—	1.85	1.73
	Contra	Grizzly Short (GRZZX)	-47.2	73.6	6.6	-12.2	-3.3	-55	123.8	-0.8	-3.7	—	1.55	3.24
	Contra	ProFunds Shrt NSDQ-100 Iv (SOPIX)	-40.6	45.3	-11.7	-1.3	1.2	-43.8	65.2	-8.7	-5.3	—	1.16	1.73
	Contra	ProFunds Short Sm Cp Inv (SHPIX)	-33	23.7	5	-11.7	-2.6	-45.5	63.9	-4.5	-5.6	—	1.25	1.73
	Contra	ProFunds Bear Inv (BRPIX)	-28	39.7	0.8	-7.2	-1.2	-39.5	76.1	0.5	-1.4	0.2	0.96	1.68
	Contra	Rydex Inv S&P 500 Str Inv (RYURX)	-27.3	40.9	1.2	-7	-0.7	-39.2	78.5	1.2	-0.9	0.9	0.97	1.43
	Contra	ProFunds Short OilGas Inv (SNPIX)	-25.9	12.1	-23.9	-16.5	—	-33.8	21.9	-14.2	—	—	1.1	1.73
	B-GvLT	Wasatch-Hoisington US Tr (WHOSX)	-22.6	37.7	10	-0.2	10.4	-9.5	24.2	5.4	5.2	7.8	0.95	0.74
	B-GvLT	AmCent Target 2025 Inv (BTTRX)	-22.3	26.7	9.7	-1.4	14.6	-7.8	12.3	2.6	4.1	8.4	1.02	0.57
	LS	James Market Neutral (JAMNX)	-17.8	-5.1	6.6	-0.5	7.9	-14.5	-6.6	-6	-2.2	1.8	0.41	2.28
	IntB-C	Rydex Str Dollr 2xStrH (RYSBX)	-16.3	7.2	-10.9	-10.5	—	-27.2	24.6	-7.2	—	—	1.06	1.69
	Contra	PIMCO StocksPLUS Sh D (PSSDX)	-14.4	47.7	5.9	—	—	-28.2	90.2	10.2	4.6	—	0.88	1.09
	B-GvLT	Fid Spt L/T Tr Bd Ix Inv (FLBIX)	-13.5	24.1	9.5	1.7	—	-3.8	16.3	5.5	—	—	0.66	0.2
	B-GvLT	Dreyfus US Try L/T (DRGBX)	-13.2	21.5	10.3	1.2	5.6	-3.8	14.6	5.2	4.5	6.1	0.65	0.65
	B-GvLT	Vanguard Long-Tm US Try (VUSTX)	-12.1	22.5	9.2	1.7	6.6	-2.9	15.5	5.5	5	7.4	0.64	0.25
	B-GvLT	T. Rowe Price US Try L/T (PRULX)	-10.9	23.2	9.9	1	5.4	-2.2	17.2	6.5	5.1	7	0.64	0.55
	LS	Nakoma Absolute Return (NARFX)	-9.2	-4.4	15.1	—	—	-8.6	-3.2	0	—	—	0.33	1.89
	B-GvIT	Fid Spt Int Tr Bd Ix Inv (FIBIX)	-5.1	16.3	10	2.6	—	-1	15.8	6.7	—	—	0.38	0.2
	LS	Rydex/SGI Mgd Ftrs Str H (RYMFX)	-4.3	8.5	—	—	—	-4.6	12.6	—	—	—	0.51	2.17
	LS	Caldwell & Orkin Mkt Opp (COAGX)	-3.4	-4.7	33	7.4	-0.2	-2.9	-1	7	5.6	4.3	0.49	1.21
	B-GvIT	Vanguard Int-Tm Treas (VFITX)	-1.7	13.3	9.9	3.1	2.3	1.3	14	7	5.2	6.7	0.32	0.25
	B-GvIT	AmCent Target 2015 Inv (BTFTX)	-1.6	12.7	10	2	4.9	2.1	12.9	6.9	5.5	8.6	0.43	0.57
	B-GvIT	T. Rowe Price US Try Int (PRTIX)	-1.4	14.1	9.9	2.5	1.5	1	15.6	7.3	5.1	6	0.31	0.52
	IntB-Gen	Northern Global Fix Inc (NOIFX)	-0.3	10.9	9.3	4.7	-8	7.5	5.1	6.5	3.1	5.2	0.44	1.15
	B-GvST	Fid Spt S/T Tr Bd Ix Inv (FSBIX)	-0.2	8.7	7.8	3.5	—	0.8	10.2	5.4	—	—	0.14	0.2
	B-GvST	AmCent Target 2010 Inv (BTTNX)	0	6.9	8.3	2.8	1.3	0.6	9.1	5	3.8	6.9	0.14	0.57
	IntB-C	Merk Asian Currency Inv (MEAFX)	0.5	—	—	—	—	2	—	—	—	—	0.16	1.3
	B-GvIT	Fidelity Interm Govt Inc (FSTGX)	0.8	10	7.8	3.6	1.4	1.7	11.9	6.2	4.7	5.6	0.18	0.45
	B-GvST	Northern Sh-Int US Govt (NSIUX)	0.9	7.5	5.4	3.9	0.6	1.6	8.8	4.6	3.6	4.3	0.14	0.9
	B-GvIT	Fidelity Government Inc (FGOVX)	1.2	11	7.8	3.5	2.4	2.6	12.5	6.6	5.1	6.1	0.22	0.45
	B-GvST	Vanguard Short-Tm Trs (VFISX)	1.4	6.6	7.8	3.7	1.7	1.5	9.1	5.3	4.2	4.9	0.12	0.22
	B-MS-CA	Schwab CATxFr YieldPlus (SWYCX)	1.7	-8.2	1.2	3.3	1.7	0.8	-7	-1.8	-0.1	—	0.17	0.49
	B-GenLT	Vanguard LongTm Bd Idx (VBLTX)	1.7	8.6	6.5	2.6	5.3	10.4	2.2	5.6	4.9	7.7	0.6	0.22
	B-GvST	AmCent S/T Gov Inv (TWUSX)	2.6	4.7	6.3	3.9	1.6	2.4	6.7	4.5	3.8	4	0.09	0.57
	B-GvST	Vanguard ShtTm Fed (VSGBX)	2.7	7	7.4	4.3	1.8	2.6	9.5	5.7	4.6	5.1	0.12	0.22
	B-GvST	Payden U.S. Government (PYUSX)	2.8	7.5	7	4	1	2.9	9.8	5.8	4.4	5	0.12	0.61
	B-MNST	Vanguard Sht-Tm TE (VWSTX)	3	3.7	4.1	3.2	1.6	2.1	5.6	3.6	3.1	3.1	0.05	0.2
	B-GvIT	AmCent Govt Bd Inv (CPTNX)	3	9.5	7.8	3.9	2.4	3.3	12.3	6.7	5.3	6	0.2	0.49
	B-MNST	Alpine UltrSh TaxOpt Inc (ATOIX)	3.2	3.5	4.1	4	2.1	2.6	5	3.6	3.4	—	0.02	0.7
	IntB-C	ProFunds Fall US Doll Inv (FDPIX)	3.2	-5.7	11.5	10	—	11.7	-12.4	2.7	—	—	0.51	1.73
	B-MS-CA	Bernstein Short Dur CA Muni (SDCMX)	3.5	3	3.5	2.7	1.1	2.5	4.7	3.3	2.8	2.8	0.07	0.69
	B-GvIT	WF Adv Govt Secs Inv (STVSX)	3.5	7.5	6.9	3.5	2.1	4.3	9	6	4.7	5.9	0.19	0.95
	B-MS-NY	Bernstein Short Dur NY Muni (SDNYX)	3.6	2.8	3.6	2.7	1.5	2.7	4.5	3.3	2.8	2.9	0.06	0.67
	B-MS-MD	T. Rowe Price MD S/T T/F (PRMDX)	3.7	3.3	3.7	2.8	0.8	2.3	5.7	3.6	2.9	3.2	0.09	0.58
	B-GenST	Vanguard Sh-Tm Bd Idx (VBISX)	4.2	5.4	7.2	4	1.3	4.4	7.4	5.6	4.4	5	0.13	0.22
	B-GenIT	Schwab Total Bd Mkt (SWLBX)	4.4	-4.5	4.7	4.5	2.6	6.9	-6	1.5	2.3	4.8	0.24	0.55
	LS	Hussman Strategic Growth (HSGFX)	4.6	-9.1	4.1	3.5	5.7	2.2	-6.1	-0.3	1.6	—	0.43	1.09

Table 4. Performance of the 50 Most Widely Held Funds

Closed	Category	Fund (Ticker)	Total Assets ($ Mil)	Annual Total Return (%)					Total Return (%)		Annual Total Return (%)
									Total Return (%)					Total
									Bull	Bear				Risk
				2009	2008	2007	2006	2005	Mrkt	Mrkt	3-Yr	5-Yr	10-Yr	Index
	Stk-LC	Vanguard Tot Stk (VTSMX)	58,004	28.7	-37.1	5.4	15.5	5.9	56.6	-50.8	-5.1	0.9	-0.3	1.04
	Stk-LC	Fidelity Contrafund (FCNTX)	57,153	29.2	-37.2	19.7	11.5	16.2	47.7	-46.3	-1	4.7	3.1	0.94
	Stk-LC	Vanguard 500 Idx Inv (VFINX)	48,313	26.4	-37.1	5.3	15.6	4.7	54.5	-50.9	-5.7	0.3	-1.1	1.01
	Stk-LC	Dodge & Cox Stock (DODGX)	39,986	31.2	-43.4	0.1	18.5	9.3	67.8	-57.9	-9.4	-0.7	5.6	1.21
	IntS-F	Dodge & Cox Intl Stock (DODFX)	36,758	47.4	-46.7	11.7	28	16.7	87.8	-59.9	-4.3	5.5	—	1.44
	IntS-F	Fidelity Diversified Int (FDIVX)	32,049	31.7	-45.3	16	22.5	17.2	60.6	-57.5	-5.8	3.7	3.9	1.28
	Bal	Vanguard Wellington (VWELX)	28,290	22.2	-22.3	8.3	14.9	6.8	38.1	-32.5	0.9	4.7	6.1	0.69
C	Stk-LC	Fidelity Growth Company (FDGRX)	28,159	41.1	-41	19.8	9.5	13.5	58.1	-50.2	0	4.4	-0.9	1.12
	IntS-F	Vanguard Total Intl Stk Idx (VGTSX)	26,044	36.7	-44.1	15.5	26.6	15.5	71.7	-58.5	-4.1	5.2	2.2	1.32
	Stk-MC	Fidelity Low-Priced Stk (FLPSX)	24,672	39	-36.2	3.1	17.7	8.6	63.6	-48.8	-2.9	3.2	11	1.17
	Stk-LC	Fidelity Magellan (FMAGX)	22,610	41.1	-49.5	18.8	7.2	6.4	65.1	-58.2	-5.4	-0.7	-2.3	1.34
	Stk-LC	Vanguard Windsor II (VWNFX)	22,005	27	-36.8	2.2	18.2	7	58.5	-52.8	-6.4	0.7	4.1	1.05
	TD2015	Fidelity Freedom 2020 (FFFDX)	20,182	28.8	-32.2	8.5	11.6	7.7	46	-42.3	-1.8	2.6	1.7	0.85
	B-GenIT	Vanguard Total Bd Idx (VBMFX)	19,555	5.9	5	6.9	4.2	2.4	7.1	6	5.9	4.9	6	0.21
	B-GenIT	Dodge & Cox Income (DODIX)	19,240	16	-0.3	4.6	5.3	1.9	16.9	-0.3	6.6	5.4	6.8	0.29
C	Stk-LC	Vanguard PRIMECAP (VPMCX)	19,056	34.4	-32.5	11.4	12.3	8.4	57	-44.3	0.4	4.3	3.2	1
	Bal	Fidelity Balanced (FBALX)	18,108	28	-31.4	8.9	11.6	10.6	42.4	-40.4	-1.4	3.4	5.2	0.81
	B-MB	Vanguard GNMA (VFIIX)	17,777	5.2	7.2	7	4.3	3.3	4.8	10	6.5	5.4	6.2	0.17
	Stk-LC	T. Rowe Price Gr Stk (PRGFX)	17,737	43.2	-42.3	10.3	14	6.5	55.2	-49.1	-3	2.1	1.1	1.06
	Bal	Fidelity Puritan (FPURX)	16,792	26.6	-29.2	6.1	14.7	4.6	40.4	-37.8	-1.6	2.7	4.1	0.73
	Stk-LC	Fidelity Equity-Inc (FEQIX)	16,556	29.5	-41.7	1.4	19.8	5.7	65.1	-57	-8.5	-0.6	1.8	1.16
	Bal	Oakmark Equity & Inc I (OAKBX)	15,609	19.8	-16.2	11.9	10.8	8.6	31.6	-24.7	3.9	6.2	9.8	0.58
	Bal	Dodge & Cox Balanced (DODBX)	15,468	28.3	-33.6	1.7	13.8	6.5	52.1	-45.7	-4.7	1	6.2	0.94
	Stk-LC	T. Rowe Price Eq Inc (PRFDX)	15,231	25.6	-35.8	3.3	19.1	4.2	62.2	-52.5	-5.9	0.7	4.1	1.09
	B-GenST	Vanguard Sht-Tm Inv-Grade (VFSTX)	14,722	14	-4.8	5.8	4.9	2.2	12.3	-2.1	4.7	4.2	4.9	0.21
	B-GenIT	PIMCO Total Ret D (PTTDX)	14,490	13.5	4.4	8.7	3.6	2.5	13.8	7	8.8	6.5	7.3	0.25
	TD2030	Fidelity Freedom 2030 (FFFEX)	14,111	30.5	-37	9.2	12.9	8.8	52	-48.3	-3.5	2	0.8	0.97
	Stk-MC	T. Rowe Price Mid Gr (RPMGX)	13,862	45.4	-39.7	17.6	6.7	14.8	62.1	-48.2	1	4.8	5.6	1.19
	B-IP	Vanguard Infl-Prot Secs (VIPSX)	12,946	10.8	-2.9	11.5	0.4	2.5	11.5	0.1	6.3	4.3	—	0.45
	Bal	Vanguard STAR (VGSTX)	12,684	24.8	-25.2	6.5	11.6	7.4	40.7	-35.6	-0.2	3.6	5.1	0.73
	Sec-H	Vanguard Health Care (VGHCX)	11,755	20.9	-18.5	4.4	10.8	15.4	41.2	-31.8	0.9	5.6	9.2	0.87
	B-GenIT	Fidelity Total Bond (FTBFX)	11,443	19.7	-5.6	4.1	5.1	2.4	18.6	-3.3	5.6	4.8	—	0.29
	B-CHY	Fidelity Capital & Inc (FAGIX)	11,342	72.1	-31.9	3.7	13	5	71.5	-33.2	6.7	7.6	6.8	0.92
	IntS-F	Vanguard Intl Gr Inv (VWIGX)	11,309	41.6	-45	15.9	25.9	15	71.7	-56.9	-3.3	5.5	2.4	1.31
	TD2000	Fidelity Freedom 2010 (FFFCX)	11,252	24.8	-25.4	7.4	9.4	5.9	37.7	-34	0	3	2.7	0.68
	Stk-LC	Fairholme (FAIRX)	11,208	39	-29.8	12.3	16.7	13.7	75.2	-47.8	3.1	7.8	13.2	1.29
	Stk-LC	Fidelity Blue Chip Grth (FBGRX)	11,107	44.9	-38.6	11.8	5.5	4	66.8	-48.8	-0.2	1.7	-2.2	1.1
	Stk-LC	T. Rowe Price Eq Idx 500 (PREIX)	11,082	26.3	-37.1	5.1	15.4	4.6	54.4	-51	-5.8	0.1	-1.2	1.01
	TD2015	Vanguard Target Rtmt 2025 (VTTVX)	10,949	24.8	-30.1	7.5	13.2	5.4	46	-42.4	-2.1	2.3	—	0.85
	Stk-LC	Fidelity Disciplined Eq (FDEQX)	10,811	21.9	-40.1	10.8	14.5	10.2	46.3	-51.8	-6.8	0.4	-0.2	1.03
	TD2015	Vanguard Target Rtmt 2015 (VTXVX)	10,405	21.2	-24.1	7.5	11.4	4.9	37.9	-34.9	-0.4	2.9	—	0.71
	B-GenIT	Fidelity U.S. Bond Index (FBIDX)	10,383	6.4	3.7	5.3	4.3	2.2	7.1	4.8	5.1	4.4	6	0.19
	B-GenIT	T. Rowe Price New Inc (PRCIX)	9,641	12.3	1.4	6.3	4.1	2.8	12.4	3.1	6.5	5.3	6.3	0.22
C	Stk-LC	Janus Twenty J (JAVLX)	9,358	43.2	-42	35.9	12.3	9.4	56	-47	4.1	6.7	-2.5	1.24
	Stk-LC	T. Rowe Price BlChpGr (TRBCX)	9,197	42.5	-42.7	13	9.7	5.9	56.5	-50	-2.6	1.4	-0.4	1.07
	TD2015	Fidelity Freedom 2025 (FFTWX)	8,881	30	-33.7	8.6	11.8	8.1	48.6	-44.2	-2.2	2.5	—	0.89
	Bal	T. Rowe Price Cap Apprec (PRWCX)	8,784	33	-27.2	4.5	14.5	6.8	48.1	-36.4	0.4	4.4	9.2	0.86
	IntS-F	Fidelity Intl Disc (FIGRX)	8,598	30	-44.3	18.9	24.2	18.5	59.5	-57	-4.9	4.9	3.3	1.23
	TD2015	Fidelity Freedom 2015 (FFVFX)	8,560	25.6	-27.2	7.8	10.3	7	39.2	-36.2	-0.5	3.1	—	0.72
	Stk-LC	Janus (JANSX)	8,547	37.2	-39.9	15.2	10.5	3.9	54.6	-48.5	-1.7	1.8	-3.7	1.08

More on Mutual Funds

Getting Started in Fund Investing

The AAII Investor Classroom at www.aaii.com/classroom provides a step-by-step understanding of important investment ideas and techniques. It includes two mini-courses that focus on mutual funds. The first, "Understanding How Mutual Funds Work," covers the basic mechanics of funds for beginners:

The second, "Choosing the Best Fund for You," is for those who want to learn how to narrow the number of fund choices:

Managing Your Portfolio

For guidance on building and managing a portfolio of funds, go to the Funds/ETFs area at www.aaii.com/mfunds for these and other articles:

Trolling for More Data

For more in-depth fund data and screening tools, AAII’s "Guide to the Top Web Sites" directs you to the best places on the Internet.

Sharing Ideas

AAII Funds/ETFs Discussion Board provides an arena where you can talk about investing in mutual funds with other AAII members. Share your ideas and ask questions of fellow members to get real-world advice.

Category & Style Definitions

Mutual Fund Categories

Mutual funds come in all shapes and sizes; there are thousands of mutual funds, each with its own characteristics. Many mutual funds, however, have shared investments that generally lead to other characteristics that are similar.

These shared characteristics allow us to divide mutual funds into categories; here we define the mutual fund categories used in AAII’s Guide to the Top Mutual Funds. In the Guide, the individual fund listings appear alphabetically within each category.

The table on page 8 provides average returns and risk of funds by category, which illustrate some of the differences between these categories.

Stock Funds

Portfolio managers of mutual funds that invest in common stocks can choose from the stocks of different industries, stocks at different stages of development, and even stocks of different countries and regions. Over the stock market cycles, large stocks behave differently from small stocks, domestic stocks do not move in unison with foreign or emerging market stocks, and stocks in different sectors or industries react differently to the same economic and business conditions.

For investors to make initial investment decisions on stock mutual funds and to compare and evaluate the ongoing performance of investments in stock mutual funds, grouping similar funds together into cohesive categories is a logical first step. The stock fund categories provided in this guide to facilitate your selection and monitoring of fund investments encompass domestic funds, sector funds, and international funds.

Domestic Stock Funds

In funds categorized by stock size, the "cap" stands for capitalization (market share price times number of shares of common stock outstanding).

Large-cap stocks are usually stocks of national or multinational firms with well-known products or services provided to consumers, other businesses, or governments. Most of the stocks in the Dow Jones industrial average, the S&P 500 and the NASDAQ 100 are, for example, large-cap stocks. While some large-cap stocks are more volatile than others, a well-diversified mutual fund portfolio of large-cap stocks would perform similarly to most investors’ conception of the stock market. Large-cap stocks, as a category, also tend to pay the highest cash dividends, although many large-cap stocks pay no dividends. Large-cap stock funds, in summary, tend to have the lowest volatility and highest dividend yield in the domestic common stock group.

Mid-cap stocks are, as their name implies, smaller than the largest domestic stocks. They are usually established firms in established industries with regional, national and sometimes international markets for their products and services. The S&P MidCap 400 index is a common benchmark for mid-cap stocks. These funds would tend to have lower dividend yields than large-cap funds and to have somewhat higher volatility.

Small-cap stocks are often emerging firms in sometimes emerging industries. But also, these small companies can be established firms with local, regional and sometimes even national and international markets. The benchmark for this group is the S&P SmallCap 600 index. These stocks must have liquid enough trading for mutual funds to invest and, although small, are still listed on the New York Stock Exchange, the American Stock Exchange or NASDAQ. These small-cap funds tend to be more volatile than large-cap and mid-cap funds, have very low dividend yields, and often do not move in tandem with large-cap and mid-cap funds.

The large-, mid- and small-cap categories capture a fund’s predominant focus and are important because these size categories do not all behave alike in a market sense. The stocks do tend to move in somewhat different cycles and have pronounced differences in risk and return over time.

Neutral/Inverse Funds

Long-short funds hold sizable stakes in both long and short positions. Some funds are market neutral, dividing their exposure equally between long and short positions in an attempt to earn a modest return that is not tied to the market’s fortunes. Others shift exposure to long and short positions depending upon their macro outlook or the opportunities they uncover through bottom-up research.

Contra stock market funds invest in short stock positions and derivatives. Because these funds often have extensive holdings in shorts or puts, returns generally move in the opposite direction of the benchmark index.

Sector Stock Funds

Sector funds concentrate their stock holdings in just one industry or a few related industries. They are diversified within the sector, but are not broadly diversified. They may invest in the U.S. or internationally. They are still influenced and react to industry/sector factors as well as general stock market factors. Sector funds have greater risk than diversified common stock funds. While there are a substantial number of sectors represented by mutual funds, a handful of sector designations cover most of the sector fund offerings: energy/resources, financial/banking, gold, health, real estate, technology, telecommunications, and utilities. As is clear from this sector category list, some sectors are of greater risk than others-technology versus utilities, for example. By definition, a sector fund is a concentrated, not diversified, fund holding.

International Stock Funds

International stock funds invest in the stocks of foreign firms. Some stock funds specialize in a single country, others in regions, such as the Pacific or Europe, and others invest in multiple foreign regions. In addition, some stock funds-usually termed "global funds"-invest in both foreign and U.S. securities. We have four classifications by type of investment for the international stock funds category-foreign stock funds, global stock funds, regional/country stock funds and emerging market stock funds.

International funds provide investors with added diversification. The most important factor when diversifying a portfolio is selecting investments whose returns are not highly correlated. Within the U.S., investors can diversify by selecting securities of firms in different industries. In the international realm, investors take the diversification process one step further by holding securities of firms in different countries. The more independently these foreign markets move in relation to the U.S. stock market, the greater the diversification benefit will be, and the lower the risk of the total portfolio.

In addition, international funds overcome some of the difficulties investors face in making foreign investments directly. For instance, individuals have to thoroughly understand the foreign brokerage process, be familiar with the various foreign marketplaces and their economies, be aware of currency fluctuation trends, and have access to reliable financial information in order to invest directly in foreign stocks. This can be a monumental task for the individual investor.

There are some risks unique to investing internationally. In addition to the risk inherent in investing in any security, there is an additional exchange rate risk. The return to a U.S. investor from a foreign security depends on both the security’s return in its own currency and the rate at which that currency can be exchanged for U.S. dollars. Another uncertainty is political risk, which includes government restriction, taxation, or even total prohibition of the exchange of one currency into another. Of course, the more the mutual fund is diversified among various countries, the less the risk involved.

Balanced Stock/Bond Funds

In general, the portfolios of balanced funds consist of investments in common stocks and significant investments in bonds and convertible securities. The range as a percentage of the total portfolio of stocks and bonds is usually stated in the investment objective, and the portfolio manager has the option of allocating the proportions within the range. Some asset allocation funds-funds that have a wide latitude of portfolio composition change-can also be found in the balanced category. Some are also global balanced funds, allocating part of their portfolio to foreign investments.

A balanced fund is generally less volatile than a stock fund and provides a higher dividend yield.

Target Date Funds

Target date funds have year designations that investors can match to their planned retirement date. They invest in a mix of domestic and foreign stocks and bonds that becomes more conservative and income-oriented as the target date draws near--the allocation to stocks decreases and the allocation to bonds increases. Risk declines and income increases as the target date approaches. Once the target date has passed, they become income funds. Target date funds are composed of other funds from the same fund family-they are in essence funds of funds.

[For more on target date funds, see "Taking Aim at Your Retirement: A Look at Target Date Mutual Funds" by John Markese from the June 2009 AAII Journal.]

Bond Funds

Bond mutual funds are attractive to investors because they provide diversification and liquidity, which is not as readily attainable in direct bond investments.

Bond funds have portfolios with a wide range of average maturities. Many funds use their names to characterize their maturity structure. Generally, short term means that the portfolio has a weighted average maturity of less than three years. Intermediate implies an average maturity of three to 10 years, and long term is over 10 years. The longer the maturity, the greater the change in fund value when interest rates change. Longer-term bond funds are riskier than shorter-term funds, and they usually offer higher yields.

Taxable Bond Funds

Bond funds are principally categorized by the types of bonds they hold.

Government bond funds invest in the bonds of the U.S. government and its agencies, while mortgage funds invest primarily in mortgage-backed bonds. General bond funds invest in a mix of government and agency bonds, corporate bonds (investment grade), and mortgage-backed bonds. Government and general bond funds are further categorized by maturity: short-term, intermediate-term and long-term.

A special category of inflation-protected bond funds hold Treasury Inflation Protected Securities (TIPS).

Corporate high-yield bond funds provide high income but invest generally in corporate bonds rated below investment grade, making them riskier.

Convertible bond funds invest primarily in preferred stocks and bonds that are convertible into common stocks. These securities exhibit characteristics of both stocks and bonds by offering yield and the possibility of capital appreciation.

Municipal and State-Specific Bond Funds

Tax-exempt municipal bond funds invest in bonds whose income is exempt from federal income tax. Some tax-exempt funds may invest in municipal bonds whose income is also exempt from the income tax of a specific state.

International Bond Funds

International bond funds allow mutual fund investors to hold a diversified portfolio of foreign corporate and government bonds. These foreign bonds often offer higher yields, but carry additional risks beyond those of domestic bonds. As with foreign common stocks, currency risk can be as significant as the potential default of foreign government bonds-a particular risk with the debt of emerging countries. International bond funds are categorized as general or emerging.

Stock Fund Style Definitions

For domestic stock funds, one other element can be superimposed over stock size distinctions to better understand performance and risk in different market environments: the growth or value investment management style of the fund portfolio manager. In the Guide, style is indicated for domestic large-cap, mid-cap and small-cap funds after the fund name by a G for growth investing focus and a V for value investing focus. Funds with G and V follow both styles.

Growth Investing Focus

A small-cap growth fund will act differently than a small-cap value fund and a mid-cap growth fund is more likely to correlate with a small-cap growth fund than a mid-cap value fund. Portfolio managers of growth-managed funds seek out stocks that have either experienced rapid growth in sales or earnings or are expected to have rapid growth. Often these stocks have high price-earnings ratios (price per share divided by earnings per share) and are volatile when expectations for earnings or sales growth change even slightly. Few growth stocks pay any significant dividend, and they are often concentrated in industries such as technology, health, telecommunications and software.

Value Investing Focus

The value style of investment management emphasizes low price to earnings, low price to sales (price per share divided by sales per share), and higher dividend yields. The trade-off relative to growth stocks is that value stocks have a lower expected growth rate in earnings and sales, but also less risk. Value stocks are often concentrated in insurance, banking, and electric and gas utilities, for example.

For purposes of diversification and risk, it pays to keep in mind the growth/value investment style mix of your stock mutual funds.

Mutual Fund Contact Information

Family Fund Name	Toll Free Phone	Web Address
Advance Capital I	800-345-4783	www.advancecapitalonline.com
Al Frank	888-263-6443	www.alfrank.com
AllianceBernstein	800-227-4618	www.alliancebernstein.com
Alpine	888-785-5578	www.alpinefunds.com
Amana	888-732-6262	www.amanafunds.com
American Beacon	800-967-9009	www.americanbeaconfunds.com
American Century	800-345-2021	www.americancentury.com
Ameristock	800-394-5064	www.ameristock.com
AMF	800-527-3713	www.amffunds.com
Ariel	800-292-7435	www.arielinvestments.com
Artisan	800-344-1770	www.artisanfunds.com
AssetMark/Genworth Financial	800-664-5345	www.genworthwealth.com
Aston	800-992-8151	www.astonfunds.com
Auxier Funds	800-835-9556	www.auxierasset.com
Ave Maria	866-283-6274	www.avemariafund.com
Baron Capital Group	800-442-3814	www.baronfunds.com
Berwyn	800-992-6757	www.berwynfunds.com
Brandywine	800-656-3017	www.brandywinefunds.com
Bridges	866-934-4700	www.bridgesinv.com
Bridgeway	800-661-3550	www.bridgeway.com
Bruce	800-872-7823	www.thebrucefund.com
Buffalo	800-492-8332	www.buffalofunds.com
Caldwell & Orkin	800-467-7903	www.caldwellorkin.com
California Investment Trust	800-225-8778	www.caltrust.com
Causeway	866-947-7000	www.causewayfunds.com
Century	800-303-1928	www.centuryfunds.com
CGM	800-598-0778	www.cgmfunds.com
Chase	888-861-7556	www.chaseinv.com
Chesapeake	800-430-3863	www.chesapeakefunds.com
Clipper Fund	800-432-2504	www.clipperfund.com
Cohen & Steers	800-437-9912	www.cohenandsteers.com
Columbia	800-345-6611	www.columbiafunds.com
Commonwealth Intl Series Tr	888-345-1898	www.commonwealthfunds.com
Copley	508-674-8459
Country	800-245-2100	www.countryfinancial.com
Coventry	800-282-8782	www.btim.com
CRM	800-276-2883	www.crmfunds.com
Davenport	800-281-3217	www.davenportllc.com
Direxion	800-851-0511	www.direxionfunds.com
Dodge & Cox	800-621-3979	www.dodgeandcox.com
Dreman	800-247-1014	www.dreman.com
Dreyfus	800-645-6561	www.dreyfus.com
Driehaus	877-779-0079	www.driehaus.com
Dupree	800-866-0614	www.dupree-funds.com
DWS	800-728-3337	www.dws-investments.com
Elite	800-423-1068	www.elitefunds.com
Empire Builder	800-847-5886	www.glickenhaus.com
Fairholme	866-202-2263	www.fairholmefunds.com
FAM	800-932-3271	www.famfunds.com
FBR	888-888-0025	www.fbrfunds.com
Federated	800-341-7400	www.federatedinvestors.com
Fidelity	800-544-8544	www.fidelity.com
First Eagle	800-334-2143	www.firsteaglefunds.com
Firsthand	888-884-2675	www.firsthandfunds.com
FMI	800-811-5311	www.fmifunds.com
Forward	800-999-6809	www.forwardfunds.com
FPA	800-982-4372	www.fpafunds.com
Fund X	866-455-3863	www.upgraderfunds.com
Gabelli	800-422-3554	www.gabelli.com
Greenspring	800-576-7498	www.greenspringfund.com
Guinness Atkinson	800-915-6566	www.gafunds.com
Harbor	800-422-1050	www.harborfunds.com
Harding Loevner	877-435-8105	www.hardingloevner.com
Hawaii Municipal	800-354-9654	www.leehawaii.com
Heartland	800-432-7856	www.heartlandfunds.com
Hennessy	800-966-4354	www.hennessyfunds.com
Henssler	800-936-3863	www.henssler.com
HighMark	800-433-6884	www.highmarkfunds.com
Hodges	866-811-0224	www.hodgesfund.com
Holland	800-304-6552	www.thehollandfund.com
Homestead	800-258-3030	www.homesteadfunds.com
Hussman	800-487-7626	www.hussmanfunds.com
ICON	800-764-0442	www.iconadvisers.com
IMS	800-934-5550	www.imscapital.com
ING	800-992-0180	www.ingfunds.com
Invesco Aim	800-959-4246	www.invescoaim.com
Iron	877-322-0575	www.ironfunds.com
James	800-995-2637	www.jamesfunds.com
Janus	800-525-3713	www.janus.com
Jensen	800-992-4144	www.jenseninvestment.com
Kalmar	800-282-2319	www.kalmarinvestments.com
Kinetics	800-930-3828	www.kineticsfunds.com
Laudus	800-447-3332	www.laudusfunds.com
Lazard	800-986-3455	www.lazardnet.com
Leavell	877-853-9876	www.leavellinvestments.com
Leuthold	800-273-6886	www.leutholdfunds.com
LKCM	800-688-5526	www.lkcm.com
Longleaf Partners	800-445-9469	www.longleafpartners.com
Loomis Sayles	800-633-3330	www.loomissayles.com
Madison Mosaic	888-670-3600	www.mosaicfunds.com
Mairs & Power	800-304-7404	www.mairsandpower.com
Managers	800-548-4539	www.managersinvest.com
Manning & Napier	800-466-3863	www.manningnapieradvisors.com
Marshall	800-580-3863	www.marshallfunds.com
Marsico	888-860-8686	www.marsicofunds.com
Masters	800-656-8864	www.mastersfunds.com
Matrix	800-366-6223	www.matrixadvisorsvaluefund.com
Matthew 25	888-625-3863	www.matthew25fund.com
Matthews Asia	800-789-2742	www.matthewsfunds.com
Merger	800-343-8959	www.mergerfund.com
Meridian	800-446-6662	www.meridianfund.com
Merk	866-637-5386	www.merkfunds.com
Metropolitan West	800-241-4671	www.mwamllc.com
Metzler/Payden	800-572-9336	www.metzlerpayden.com
Midas	800-400-6432	www.midasfunds.com
Monetta	800-241-9772	www.monetta.com
Muhlenkamp	800-860-3863	www.muhlenkamp.com
Nakoma	866-662-5662	www.nakomafunds.com
Needham	800-625-7071	www.needhamfunds.com
Neuberger Berman	800-877-9700	www.nb.com
New Century Portfolios	888-264-8578	www.newcenturyportfolios.com
New Covenant	877-835-4531	www.newcovenantfunds.com
Nicholas	800-544-6547	www.nicholasfunds.com
Northeast Investors	800-225-6704	www.northeastinvestors.com
Northern	800-595-9111	www.northernfunds.com
Oak Associates	888-462-5386	www.oakfunds.com
Oak Value Fund	800-622-2474	www.oakvaluefund.com
Oakmark	800-625-6275	www.oakmark.com
Oberweis	800-245-7311	www.oberweisfunds.com
Osterweis	800-700-3316	www.osterweis.com
Parnassus	800-999-3505	www.parnassus.com
Pax World	800-767-1729	www.paxworld.com
Paydenfunds	800-572-9336	www.payden.com
Permanent Portfolio	800-531-5142	www.permanentportfoliofunds.com
Perritt	800-332-3133	www.perrittmutualfunds.com
PIA	800-251-1970	www.piamutualfunds.com
PIMCO	800-426-0107	www.pimco-funds.com
Pinnacle	877-369-3705	www.pinnaclevaluefund.com
PRIMECAP Odyssey	800-729-2307	www.odysseyfunds.com
ProFunds	888-776-3637	www.profunds.com
Rainier	800-248-6314	www.rainierfunds.com
RBC	800-463-3863	www.rbcam.com
Reynolds	800-773-9665	www.reynoldsfunds.com
Robeco	888-261-4073	www.robecoinvest.com
Royce	800-221-4268	www.roycefunds.com
Rydex/SGI	800-820-0888	www.rydex-sgi.com
Schneider	888-520-3277	www.schneidercap.com
Schroder	800-464-3108	www.schroderfunds.com
Schwab	800-435-4000	www.schwab.com
Schwartz	888-726-0753	www.schwartzvaluefund.com
Scout	800-996-2862	www.scoutfunds.com
Selected	800-243-1575	www.selectedfunds.com
Sequoia	800-686-6884	www.sequoiafund.com
Sit	800-332-5580	www.sitfunds.com
Sound Shore	800-754-8758	www.soundshorefund.com
State Street Global Advisors	800-647-7327	www.ssgafunds.com
Stratton	800-472-4266	www.strattonmutualfunds.com
T. Rowe Price	800-638-5660	www.troweprice.com
TCW	800-386-3829	www.tcw.com
TFS	888-534-2001	www.tfscapital.com
The Arbitrage Fund	800-295-4485	www.thearbfund.com
The Westport Funds	888-593-7878	www.westportfunds.com
Third Avenue	800-443-1021	www.thirdavenuefunds.com
Thomas White	800-811-0535	www.thomaswhite.com
Thompson Plumb	800-999-0887	www.thompsonim.com
TIAA-CREF	800-223-1200	www.tiaa-cref.org
Tocqueville	800-697-3863	www.tocquevillefunds.com
Torray	800-626-9769	www.torray.com
Turner Investment Partners	800-224-6312	www.turnerinvestments.com
Tweedy Browne	800-432-4789	www.tweedy.com
U.S. Global Investors	800-873-8637	www.usfunds.com
USA Mutuals	866-264-8783	www.usamutuals.com
USAA	800-531-8722	www.usaa.com
Value Line	800-243-2729	www.vlfunds.com
Vanguard	800-662-7447	www.vanguard.com
Victory	800-539-3863	www.victoryconnect.com
W.P. Stewart	888-695-4092	www.wpstewart.com
Wasatch	800-551-1700	www.wasatchfunds.com
WB Capital	800-438-6375	www.wbcapitalfunds.com
Weitz	800-304-9745	www.weitzfunds.com
Wells Fargo Advantage	800-222-8222	www.wellsfargofunds.com
WesMark	800-864-1013	www.wesmarkfunds.com
Westcore	800-392-2673	www.westcore.com
William Blair	877-962-5247	www.williamblair.com
Wilshire	888-200-6796	www.wilfunds.com
Winslow Green	888-314-9049	www.winslowgreen.com
Wintergreen	888-468-6473	www.wintergreenfund.com
Wright	800-888-9471	www.wrightinvestors.com
Yacktman	800-525-8258	www.yacktman.com

Discussion

Robert McLaughlin from VA posted over 7 years ago:

I can't download any of the spreadsheets. I keepetting the following message: Wheels.RouteNotFound Could not find a route that matched this request. Suggested action Make sure there is a route configured in your config/routes.cfm file that matches the topfunds/fundlistings.xls request. Tag context Error thrown on line 139 in wheels\dispatch\functions.cfm - called from line 207 in wheels\dispatch\functions.cfm - called from line 173 in wheels\dispatch\functions.cfm - called from line 6 in wheels\index.cfm - called from line 2 in rewrite.cfm - called from line 5 in wheels\events\onrequest.cfm

Jean from AAII posted over 7 years ago:

This is an old guide. Are you specifically looking for data from the 2010 guide? Please go to www.aaii.com/guides/mfguide for the most current Top Funds Guide. Thanks for your interest.

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