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 NEW YORK (AP) - The stock market's retreat over the past three weeks has eroded the value of mutual funds, the vast majority of which posted negative returns for investors for the quarter, according to a preliminary survey released Friday by mutual fund watcher Lipper Inc.
U.S. diversified equity funds — the most common mutual funds found in 401(k) and other savings plans, with more than $3 trillion in assets — posted an average 3 percent negative return for the first quarter, Lipper said.
Growth funds, which incorporate riskier stocks than core or value funds, saw the worst returns. Small-cap growth funds had a negative return of 5.27 percent, followed by large-cap growth funds' 5.18 percent negative returns. Only specialty diversified funds, usually those which invest using religious or ethical philosophies, saw a positive return, averaging 4.37 percent. The 127 specialty funds in the survey account for just $14.8 billion in assets, Lipper said.
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