Many retail-oriented mutual funds invest heavily in bonds rather than stocks. As this list from Morningstar shows, the only two funds with all of their portfolio assets in retail companies are bond funds. Mutual-fund experts stress, however, you should make sure expenses are below 1 percent before buying into a retail-oriented bond fund. Gains from bond funds also tend to be lower, over time, than from stock funds.
Fund name % Retail YTD 5-yr.*
Smith Barney Div. Inc. B 100% 0.6 7.2
Enterprise High-Yield Bond A 100 2.3 9.4
Fidelity Select Retailing 90 5.9 23.7
Rydex Retailing Inv. 88 10.0 N/A
MSDW Convertible B 71 1.5 9.0
Source: Morningstar Inc. as of 3/31 market close.
N/A: Not available, newer fund.
WHITNEY DODDS WOODRUFF