1.   However, there is no guarantee that the stock market will continue to soar, nor is there any guarantee that the market will continue to outperform managed funds.

2.   If your fund outperforms similar funds, then you deserve accolades, regardless of whether your fund made money or outstripped the relevant index.

3.   Index funds tend to outperform funds managed by companies that are relatively new to the mutual fund business and fund groups that have limited research resources, Barney said.

4.   More tellingly, new funds that bought only small-company stocks outperformed established funds with the same specialty by more than four percent in their first year.

5.   Not surprisingly, the portfolio of stock picks outperformed the funds holding them.

6.   That fund, which is actually managed by Templeton Investment Counsel, is outperforming similar funds and should continue to do so, he said.

7.   This means bond funds may outperform stock funds in the next few quarters, he said.