Stock Funds Rose In April, Led By Finance And Tech; 7.49% gain in month puts equity in positive territory for the year, up 3.89%.(SERIES: FUNDS & PERSONAL FINANCE)(IBD SPECIAL REPORT)

Byline: KEN HOOVER

Riding on the back of a surging stock market, U.S. stock mutual funds put in a solid performance in April, lending credence to the belief the bear market might be over.

It was the best month since October, when stocks bounced off bear market lows. That bounce turned out to be of the dead-cat variety, and by December the market was headed south again.

But March 12 turned out to be a pivotal day. With war in Iraq all but a certainty, investors decided we would win quickly. Once again, the stock market correctly anticipated events. The market finished up for the day.

The market has been advancing in fits and starts since then, and for the first time in recent memory leading stocks have been able to maintain sustained moves.

For the month through April 29, the average domestic stock fund rose 7.49%, according to Lipper Inc. Year to date, the average fund gained 3.89%. In a reversal of trends for the month, value did better than growth, and large-cap did better than small. But year to date, large-cap growth has done the best and small-cap value has done the worst.

For the month through April 29, the Dow Jones industrials rose 6.4%; the S&P 500 was up 8.2%; the Nasdaq composite did best, rising 9.7%; the small-cap S&P 600 was up 7.2%.