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Special Report

Our Take on This Year's Best-Selling Funds

What a difference a Nasdaq correction makes. As recently as about a year ago, the best-selling funds were some of the raciest of the bunch. Internet and specialty-tech funds were all the rage, and it seemed that nothing could stop the Janus leviathan from scooping up more and more of investors' cash. However, this year's top fund sales, according to data from Financial Research Corporation, show that investors have tempered their tastes a bit after the stock market's rocky performance of late. Indeed, many investors are shunning stocks all together--the top-selling fund so far in 2001 is a bond fund.

We can't argue with investors' preference for these offerings; they're some of the most tried-and-true funds in our database. Some of them weren't the hottest offerings around during the tech surge of the late 1990s, but now that the tide has turned, it's quite apparent why these funds are worthy of all the attention they're getting. It's important to remember, though, that even these steady funds won't always be top performers. A well-diversified portfolio will help smooth the market's bumps.