The Worst Mutual Funds of the Decade -Fidelity Growth Strategies tops the List

Bloomberg reports on the decade’s worst performing, large mutual funds. These are funds that still manage over one billion in assets, in spite of the large decline.

Topping the list is Fidelity Growth Strategies (FDEGX), with a walloping 67% loss. Vanguard U.S. Growth (WWUSX) was down 50% to earn the un-coveted number 2 spot. The 10 worst funds tumbled an average of 43% through the decade which is five times the decline of the Standard & Poor’s 500.

The main factor attributed to the decline of the 10, was a high concentration of technology stocks. The technology stocks were held during the bursting of the internet bubble in 2000, which added momentum to the further decline of 2008. Many of those tech stocks never recovered.

In the case of Fidelity Growth Strategies, frequent portfolio manager changes accelerated the decline. Fidelity is known for frequently swapping managers at under performing funds.

What is remarkable is that each of these funds has over one billion in assets. Why would anyone keep such a poor performing fund for a decade? This is further evidence that many people hang on to poorly performing mutual funds that are in their retirement accounts.

If you are in that situation, check out my primer here on Benzinga called, “Finding Mutual Fund Superstars,” which shows you how to use Morningstar’s free screening tool to find the best funds.

Fund AUM % Change
(in billion)

Fidelity Growth Strategies $1.9 -67 percent
Vanguard U.S. Growth $4.0 -50 percent
Putnam New Opportunities $2.6 -46 percent
Columbia Select Large Cap Growth $1.7 -41 percent
SEI Large Cap Growth $2.1 -40 percent
MFS Growth $2.1 -39 percent
Janus Enterprise $2.4 -38 percent
Putnam Investors $1.6 -37 percent
Seligman Growth $1.4 -37 percent
AIM Constellation $3.1 -37 percent