'Fun' Funds Might Get Hot as Boomers Retire

Now that Baby Boomers are starting to retire, it's going to be easier to predict which mutual funds might be the hottest, according to Reuters.

For example, Boomers like to have fun, so it shouldn't be surprising that the four top mutual funds that focus on leisure have had a 32.4% return since 2000, according to Don Cassidy, an analyst with Lipper in Denver.

"I like to be in them, in effect, to overweight those areas that the megatrends favor," he said.

The four funds are the Icon Leisure & Consumer Staples, the Fidelity Select Leisure, Rydex Leisure and AIM Leisure

Cassidy also believes that, since the boomers are entering their "investment obsessed" years, mutual funds themselves are a safe bet, although those stocks on their own don't provide the diversification investors need.

In addition, the older we get the more healthcare we need, so just about anything investing in healthcare is really a no-brainer. Top picks form Morningstar in Chicago include the T. Rowe Price Health Sciences Fund and the Schwab Health Care Fund.