Actively managed funds beat our their indexed brethren in the first quarter of 2003, according to Standard & Poor’s. In the Standard & Poor's Indices Versus Active Funds Scorecard (SPIVA), analysts found that actively managed mutual funds are better equipped to take advantage of the economic recovery.

"The actively managed funds can be better positioned because in a very volatile market like this, a lot of active managers can take profits in turning positions, such as the consumer discretionary sector," said Phil Edwards, director of fund research.

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