The Best Performing Mutual Funds of 2009
- Mutual funds rebounded in 2009.stock market analysis screenshot image by .shock from Fotolia.com
After a difficult 2008, marked by a massive market retreat when most mutual funds posted large losses and market leaders managed to distinguish themselves by just merely controlling losses, 2009 marked a major return for mutual fund investment. Some of the top-performing mutual funds of 2009 reported gains of more than 100 percent and the market generally appeared much healthier, with a few mutual funds leading the pack.
Rydex Dynamic NASDAQ-100 2x Strategy
- This fund, from the Rydex family, is an indexed fund of NASDAQ 100 companies. Essentially, the fund makes high-risk investments in NASDAQ 100 companies, attempting to amplify the performance of the general group, risks that paid off handsomely in 2009 with a return of nearly 120 percdent, even as investment professionals warned against high-risk indexed funds.
- Like the Rydex fund, this fund from the Profunds family invests in the 100 top-performing companies in the NASDAQ, using a series of derivatives such as options and futures to profit from market movements in the group. While indexed trading in derivatives is a risky strategy, the Profunds U100 fund more than doubled investor's money with earnings of nearly 120 percent.
- Aegis Value Fund posted a 91 percent gain in 2009. With an aggressive growth strategy, the fund seeks long-term appreciation with investments in "value stocks," common stocks with low market capitalization that, in the opinion of the fund manager, have good growth prospects.
AIM Mid Cap Basic Value
- The AIM Mid Cap Basic Value Fund places most of its net assets in medium-sized companies -- as determined by market capitalization -- attempting to balance growth potential with mid-sized stability. In 2009, the fund announced returns of more than 83 percent.
Legg Mason Capital Management Opportunity Trust
- Rounding out the top five with gains of more than 83 percent in 2009, this Legg Mason mutual fund also has a strong growth strategy, investing in a more diverse portfolio and occasionally making riskier leveraged investments.