Fund shareholders continue, of course, to favor funds that invest in American stocks.

He generally favors funds, despite the surge in their assets and the stock market's risks, as best for smaller investors.

Because of those considerations, Professor Gibson says he instead favors open-end mutual funds that significantly restrict short-term trades.

For investors who want to bet on long-term market moves, the misalignment favors tax-exempt funds.

Several factors favor quant funds.

But after a strong move last year by investment-grade bonds, some experts think further bond rallies could favor the lower-grade issues and funds.

Black investors favor funds over individual stocks, Asians the reverse.

Corporate executives who negotiate terms for their companies' 401(k) plans have increasingly favored funds with lower fees.

The researchers found that executives of fund families used several approaches to favor certain funds.

He says that favoring funds with good reports - ones that help investors understand a fund's strategy - increases investors' chances for long-term success.