Conference nyoss1::market_investing

385.0. "To INDEX or not to INDEX" by SLOAN::HOM () Fri Feb 12 1993 13:27

Note 382.4 says:

>     Remember, as a general rule, at any given time, LESS THAN 20% of all
>     funds do better (NET CHARGES) than the unmanaged S&P 500.

While this rule is true over the longer and applied to all mutual funds,
Fidelity seems to have hit a string of winners in beating the SP500.

Some observations:
	- the SP500 are large cap stock while many of the funds are
	  specialization in small cap stock. Hence the Russell 2000
	  index might be more appropriate in some cases.

	- most Fidelity funds have some amount of cash while the SP500
	  is always full invested. This makes the Fidelity performance
	  even more impressive.

Some food for thought.

[This was posted on the usenet by a SP500 fund basher.]:

  Fidelity Growth Funds - Total Return (%)  
                          1992    1991
                          ----    ----
  Low Price Stock         29.0%   46.3%
  Value                   21.2    26.2
  Trend                   16.8    36.3
  Capital Appreciation    16.4    10.0
  Contrafund              15.9    54.9
  Destiny II              15.5    41.4
  Stock Selector          15.4    45.9
  Destiny I               15.2    38.9
  OTC                     14.9    49.2
  Special Situations      13.5    23.7
  Disciplined Equity      13.2    36.0
  Retirement Growth       10.6    45.6
  VIP Growth               9.3    45.5
  Emerging Growth          8.4    67.1
  Growth Company           7.9    48.3
  (S&P 500)                7.7    30.5
  Market Index             7.3    30.3
  Magellan                 7.0    41.0
  Blue Chip                6.2    54.8
   
  In 1992, 15 out of 18 growth funds beat the S&P, and 3 trailed it.
  In 1991, 14 out of 18 growth funds beat the S&P, and 4 trailed it.
   
   
  Fidelity Growth and Income Funds - Total Return (%)
   
                          1992    1991
                          ----    ----
  Convertible Securities  22.0%   38.7%
  Real Estate             19.5    39.2
  Asset Manager: Growth   19.1    19.1
  Equity-Income II        19.1    46.6
  VIP Equity-Income       17.0     NA
  Puritan                 15.4    24.5
  Equity-Income           14.7    29.4
  Asset Manager           12.7    23.6
  Growth and Income       11.5    41.8
  Utilities Income        10.9    21.2
  Fidelity                 8.5    24.2
  Balanced                 7.9    26.8
  (S&P 500)                7.7    30.5
   
  In 1992, 12 out of 12 growth and income funds beat the S&P, and 0 trailed it.
  In 1991,  4 out of 11 growth and income funds beat the S&P, and 7 trailed it.