Our Take on the Quarter's Best-Performing Funds

We've always warned about the perils of chasing short-term performance, and this quarter's top-performing funds are no exception. While most stock-fund categories have continued to bleed red ink for the year to date through March 17, 2003, funds that invest in technology-related stocks have hit the top of the charts. Some investors have been speculating on an upturn in the semiconductor cycle, and other tech-related industries such as wireline equipment and data networking have also bounced higher in the hopes of better days ahead. 

Investors should bear in mind that technology funds are highly specialized offerings that carry a considerable amount of risk, though. Their hefty expense ratios are another drawback. 

With commodity prices surging,  Oppenheimer Real Asset  has been another top performer. The fund has benefited from higher prices on oil, gas, and other commodities. But this fund also fills a highly specialized role and is probably too volatile for most investors' portfolios. 

To learn more about our take on 2003's standouts, Premium Members can click on the Analyst Report links below.

Top-Performing Funds in 2003's First Quarter*
	Year-to-Date Return ( % )	Net Assets ( $mil )	Morningstar Rating
Amerindo Technology Fund  has huge positions in Internet stocks, and its ups and downs can be extreme. Read the full  Analyst Report.	16.88	59
Gut-wrenching losses illustrate the downside of ProFunds UltraOTC's (UOPIX) leveraged approach. Read the full  Analyst Report.	16.40	167
Red Oak Technology Select Fund (ROGSX) is about as risky as they come, and its concentrated portfolio leads to extreme gyrations in returns. Read the full  Analyst Report.	12.35	241
Diversification benefits alone may not be enough to convince investors to find a place for Oppenheimer Real Asset Fund . Read the full  Analyst Report.	11.29	224
RS Information Age Fund (RSIFX) has a shot at succeeding in a sustained tech rally, but it's so risky that it's probably inappropriate for the vast majority of investors. Read the full  Analyst Report.	10.33	51
TCW Galileo Aggressive Growth Equities  simply has too much sector- and issue-specific risk. Investors seeking mid-cap growth exposure can find smoother rides with a more diversified portfolio elsewhere. Read the full  Analyst Report.	9.76	97
Enterprise Technology Fund  has a broader take on the Internet sector than most, and management will hold mainstream technology and even some nontechnology stocks alongside pure-play dot-coms. Read the full  Analyst Report.	9.63	52
AXP Global Technology  fared poorly in its inaugural two years, but things are finally looking up. The new management team includes an ex-Fidelity tech-fund manager. Read the full  Analyst Report.	9.43	126	N/A
Berkshire Focus Fund's (BFOCX) history leaves much to be desired, and we're also bearish about its prospects. Read the full  Analyst Report.	9.19	23
Alliance Emerging Market Debt (AGDAX) is much too risky for conservative and mainstream bond investors. Intrepid emerging-markets-bond fans with long time horizons, on the other hand, should check it out. Read the full  Analyst Report.	9.16	252
* Table includes the top-performing funds in Morningstar's coverage universe. Data is through 03-17-03.