2008 has not been a good year so far for mutual funds. A study by Meitav Investment House found that mutual funds fell by an average 2.9% in January, writing off a total of NIS 3.5 billion.
A total of NIS 6 billion were withdrawn from mutual funds, most of which was then deposited in the new money market funds which began operations at the start of the year.
While the year did start of on the wrong foot with heavy losses, in relation to other stock exchanges worldwide the Tel Aviv Stock Exchange (TASE) fared reasonably, thanks to the good and stable condition of the local economy. The foreign investment centered mutual funds were the hardest hit, with an average drop of 16.4%, while Israeli centered mutual funds fell an average 11.8%.
It is interesting to note that many funds managed to beat the indices. The Tel Aviv 25 fell 12.8% in January and the Tel Aviv 100 fell 13.1%, while 73% of the index relevant mutual funds managed to provide better returns, some by a difference of up to 5%.
Published by Globes [online], Israel business news - www.globes-online.com - on February 5, 2008
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