New mutual fund launches in the first half of 2009 totaled 315, compared with 741 launched in the same period in 2008.
The leading categories of new funds in the first half of 2009 are large-cap core, with 16 launches; multicap core, with 12; and large-cap growth, also with 12.
“Investors are getting back to large cap and multicap,” said Tom Roseen, a senior research analyst at Lipper. “These are the traditional mainstays of a portfolio.”
When investors venture back into equities or move to increase exposure, they are likely to look for investments that are relatively conservative, observers said.
“Until you have a real sense that the equity markets are strong and are going to rise with some consistency, I think you will see a real conservative streak on the part of investors,” said Burt Greenwald, a mutual fund consultant. “Investors are looking for stability, fixed-income and balanced funds, These are going to continue to be at the forefront.”
Sue Asci is a reporter at InvestmentNews, a sister publication of Pensions & Investments.