Fund Investors: Do Not Feed the Bears

After years of sitting out the stellar gains of the bull market, bear market mutual funds are finally getting their day, trouncing the pack in the first quarter of this ugly year. But many market watchers say these funds aren't be the best choice for the long-term investor.

It's no surprise that bear market funds are dominating the list of top performing mutual funds for the first quarter of 2001. As of March 29, seven of the top 10 performing funds in the quarter were bear funds, according to Lipper.

The Quarter's Best
Fund	Category	Return
(RYVNX Quote)Rydex Dynamics Venture	Short	56.3%
(USPIX Quote)ProFunds UltraShort OTC	Short	54.8
(RYAIX Quote)Rydex Arktos	Short	34.4
(POTSX Quote)Potomac OTC Short	Short	34.3
Ameristock Focus Value	Large-Cap Value	32.9T
(URPIX Quote)ProFunds Ultrabear	Short	29.8
(RYTPX Quote)Rydex Dynamic Tempest	Short	28.5
World Funds Third Millennium Russia	Emerging Markets/Russia	24.4
Leuthold Grizzly Short	Short	23.9
(DRCVX Quote)Comstock Capital Value	International Hybrid	22.3
Source: Lipper

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