Many highly touted growth funds have fallen into a rut in the last month and have raised concerns among industry experts by underperforming Standard & Poors 500 Index, USA Today reports.
Growth fund managers often lag conservative performance benchmarks like the S&P 500 during turbulent markets by picking expensive stocks with strong earnings potentials. Many of these bets backfire because nervous investors often sell these issues when market conditions become choppy.
During the past four weeks, the S&P 500 Index has fallen 3%, but numerous flagship growth funds at some of the industrys largest mutual fund providers have fared much worse. For example,
