Analysis of different types of the USA mutual funds’ rate of return and risk for the period of 2000–2010

Lina Žalgirytė, Andrius Guzavičius


Investors are offered a wide variety of investment options with the opportunity to invest not only in domestic but also in foreign markets. One of the most popular investment options is mutual funds. It is a proper choice for investors lacking investment experience and/or money. The literature discusses a number of different performance evaluation methods. A method with the results of which ordinary investors often come across is the mutual fund’s rate of return and risk analysis.
The article deals with the United States equity, indices, bond and hybrid funds rate of returns and risks for the period of 2000¬2010. At that time, there were two stock market meltdowns in 2001 and in 2007¬2008, which had a significant impact on fund performance. In 2001¬2002, bond funds were the best investment option. Investors got the best return with minimum risk, compared with other fund types. In 2008, bond funds suffered minimum losses, stock and index funds suffered the largest losses, compared with other fund types. The results show that stock market situation had major influence on stock and index funds. Bond funds were the least affected by the changes in the stock market. During 2000¬2010 bond funds are seen as the most attractive investment options according to the average – dispersion criterion. In the period from 2003 to 2006, all four types of funds are seen as equally attractive investment options. Fund selection would only depend on the level of risk acceptable to the investor.


investment fund; fund type; rate of return – risk analysis

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"Business Systems & Economics" ISSN online 2029-8234