Few Funds Resist Market's Downdraft Bonds And Stocks Hit Diversified stock funds sink 4% in latest week as real estate slows slide.(MUTUAL FUNDS)(INVESTMENT TREND)

Byline: DAN MOREAU

Reflecting a stock market in retreat, S&P 500 index mutual funds led other diversified stock funds lower, falling 4.79% in the week of Jan. 23-30, Lipper Inc. said. Big-cap growth mutual funds took the second-biggest tumble, falling 4.49%. The losses cut across investment strategies. Mid-cap growth slid 3.39%. Mid-cap value dropped 3.91%. Small-cap value's 3.96% skid led small caps lower. Tech and telecom took the biggest hits among sector funds on poor earnings outlooks from several major stocks. Financial services suffered a similar fate. Real estate funds fell the least in the week, 0.91%. But they stood out as one of the weakest groups this year, with a 3.75% decline. Analysts cited concern that the weak economy would finally drag down retail and office occupancy rates. Financial services funds were down 4.39%. David Ellison, manager of the FBR Small Cap Financial Fund, says profit-taking, concerns that interest rates might fall further and some worries about rising nonperforming loan rates combined to push down returns.

"But there is no big fundamental change," Ellison said. "And there are no big changes in the outlook for financials."

Even gold funds, up 2.12% for the year through Jan. 30, were off in the week, falling 2.38%.

"Gold stock prices are having trouble keeping up with the price of gold," said Charles de Vaulx, manager of ...