Bear Market Mutual Funds: Do they Deliver as Promised?

(Pages 42-53)

Richard J. Kish*
Lehigh University, 621 Taylor St. Bethlehem, PA 18015.


Mutual funds with high bear market ratings are tested over both bear markets and bear corrections to determine if their risk adjusted returns outperform the market, as proxied by the S&P 500 index. The outcomes are mixed showing outperformance during longer bear markets, but not during short bear markets or bear corrections. Thus, the results are not consistent enough to justify investing in the high rated (A+/A) bear markets funds. Although it might be wise to include some A+ or A bear market rated funds for diversification during downturns in the market.


Defensive mutual funds, bear markets.

How to Cite:

Richard J. Kish. Bear Market Mutual Funds: Do they Deliver as Promised?. [ref]: vol.19.2021. available at:

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