Although first quarter 2010 mutual fund results were positive, Lipper Inc. says that the average diversified U.S. stock fund fell 7% in the second quarter. Withdrawals from funds were up, too, as, according to the mutual fund industry trade group Investment Company Institute (ICI): during a single week in June, $1.8 billion left stock funds.
Real estate and bond funds did better, with the former only falling 1.1% in the quarter and the latter showing returns of 3% to 4%. Precious metal funds were up 11.4% thanks to the gleam of gold, which has reached dizzying levels. Raw materials funds, thanks to the slow economy, were down more than precious metals were up, at 11.6%.
