Carr, chairman of Fiduciary Management Associates, said a key to surviving exaggerated market swings, such as the 24 months ended last March, is the relatively small amount of money the fund manages. Many studies have demonstrated that smaller actively managed funds can reposition themselves more nimbly than giant funds during volatile periods. Some roller-coaster funds proved their worth in the 24 months of this study. That's an individual decision. Putting the numerous varieties of mutual fund results from the March 1999-March 2001 period under the microscope provides one of the best opportunities in decades to find the bulls and the bears, the rabbits and the tortoises.
Capital gains are the name of the game for most investors.
Without them, you'd be left with dividend and interest income. But for taxable investors, capital gains taxes paid later are always better than taxes paid sooner.