Funds to Weather a Bear Market

Morningstar screens for funds that are resilient during market declines.

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Morningstar takes a look at resilient mutual funds. Analysts screened for funds that held up well during the 2000-02 bear market—specifically, funds that ranked among the top third of their categories for each calendar year during that period—as well as in this year's market plunge. To ensure that the current fund manager was also steering the fund in 2000, analysts required manager tenures of at least nine years.

The list includes well-known names like American Funds' Growth Fund of America, Dreyfus Appreciation, and T. Rowe Price Mid-Cap Growth, as well as some relative unknowns, such as Kalmar Growth-with-Value Small Cap. What's the common thread? Says Morningstar: "Many of these funds have held up well during tougher times by looking for companies that have strong prospects no matter what the economic weather may bring."