Fair Weather Fund
 |
Definition of 'Fair Weather Fund'A type of mutual fund that has a tendency to perform well during a bull market. In other words, it is a mutual fund that generally outperforms the market when the market is doing well, and underperforms the market when the market is doing poorly. |
 |
Investopedia explains 'Fair Weather Fund'Fair weather funds are very active during bull markets. For example, mutual funds that focused on technology companies in the early stages of the tech bubble in the 1990s were very successful. To determine whether a prospective mutual fund is a fair weather fund, simply compare the fund's relative returns to the market index during both bear and bull markets. |
Related Definitions
Articles Of Interest
-
Mutual Fund Tune-Up Delivers High-Powered Performance
Rebalancing your portfolio will protect you from risk and ensure that your investments are performing at their best. -
Mutual Fund Basics Tutorial
Learn about the basics - and the pitfalls - of investing in mutual funds. -
How To Cut Your Mutual Fund Fees By Up To 90%
Most mutual funds don’t come close to beating the indexes they’re compared against. And yet they carry steep fees for active management. Find out how a little research and effort can cut your ... -
Profiting In Bear And Bull Markets
There are many ways to profit in both bear and bull markets. The key to success is using the tools for each market to their full advantage. -
Beware Of The Mutual Fund Performance Trap
Want to own a mutual fund that will double its reported return in the next six months? Chances are, you already do. Every equity mutual fund on the planet is about to report a big jump in ... -
Using ETFs To Replace Your Expensive Mutual Funds
Fees associated with many mutual funds looks small. Some are barely over 1% or even lower. But over time those fees erode the overall value of your portfolio. And even in the near term, as in ... -
The Hidden Fees In 401(k)s
Learn about the conspicuously disclosed fees that lurk within your 401(k) investments. -
Choose A Fund With A Winning Manager
We break down the key components of analyzing a fund manager's performance so you can find a winner. -
Analyzing The Best Retirement Plans And Investment Options
Understanding the various retirement investments - from annuities to 401(k)s and everything in between - is crucial to reaching your retirement goals. Here, we examined many of the popular investments ... -
Women: Invest In Your Financial Literacy
Learning about money may seem intimidating, but it's not as hard as it looks.
Free Annual Reports