Mutual fund investors had a banner year in 2006.
According to mutual fund data service Lipper, nearly 99 per cent of all equity funds posted positive returns in the fourth quarter of 2006, and the average equity fund was up 15.47 per cent for the entire year.
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Investors who went international fared even better in many cases, as China region funds skyrocketed 61.54 per cent for the year, and Latin American funds and European region funds returned 44.12 per cent and 33.65 per cent, respectively.
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Sector investors who stuck with real estate funds were richly rewarded with an average return of 34.08 per cent. Real estate funds, in fact, represent the only equity classification that's produced seven consecutive years of positive performance.
Just two of Lipper's equity fund classifications produced losses on average last year: Japanese funds, which slipped by an average of 2.39 per cent, and dedicated short-bias funds, which declined 7.22 per cent.
After such a fruitful year, where can investors expect gains in the world of mutual funds and exchange-traded funds this year? Forbes polled some of the top mutual fund advisers in the business for their picks.
One theme that continues to dominate is going abroad for gains, as well as a resurgent technology sector.
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