Mutual fund managers have been predicting and hoping for a pick up in the growth arena for more than a year now, and finally, in 2005, growth funds are beating value, and fund managers are arguing that this new trend will continue well into 2006, according to Business Week Online."Our bet right now is on growth stocks," says Gina Sanchez, manager of the American Century Investments' Strategic Asset Allocation Funds.

Investors, who have focused on growth in previous years, have a long way to go when it comes to making up for all the years of losses. On the other hand, those who have a well-diversified portfolio, mixing growth, value, small-cap and large-cap, should not be complaining because the average U.S diversified fund rose by 7.7% this year, which is higher than the 5.7% return for the S&P 500-stock index through Dec. 9.

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