Frank Sinatra sang that when he was 21, everything came undone. But in 2003, when the mutual fund industry became the "scandal-scarred mutual fund industry," a Sinatra-like downturn that seemed imminent never occurred. In fact, the opposite happened.

According to Lipper, U.S. stock mutual funds rose 30.6% in 2003. In a report released Wednesday, the research firm also predicted that monthly fund flows could reach $200 billion by the end of 2003, making it the second most prosperous year in mutual fund history. It marks the first time in three years that the industry has gained.

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