Saving and investing: Watch out for asset bloat

Deseret News (Salt Lake City) | May 8, 2006| | Copyright

From 1996 through 2001, State Street Aurora threatened to become the Barry Bonds of funds.

The fund, which invested mainly in small companies, beat the Russell 2000 index five times, each time by at least 12 percentage points -- and twice by 40. Assets grew from $1 million to $1.7 billion. Now called BlackRock Aurora, the fund has since edged the Russell twice and trailed it slightly twice. It's no longer the home- run hitter it once was.

When it comes to funds, bigger isn't necessarily better. Asset bloat is particularly problematic for funds that invest in small companies. Bloat makes it ...

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