Don't get caught with
lemons in your mouth

By Doug Fabian
Successful Investing

       Summer is in full swing, and the weather has really heated up all across America. To cool off, many people will pour themselves a tall glass of ice-cold lemonade. Hey, I think it's fine if your lemons get squeezed into lemonade, but what isn't fine is if you have lemons in your investment portfolio.
        The lemons I'm talking about here are underperforming mutual funds that have earned a spot on the infamous Mutual Fund Lemon List, the list of the worst-performing mutual funds. To be classified as a lemon, a fund must pass strict screening criteria: it must underperform its peer group average for the last 12 months, as well as for the last three- and five-year periods.
        The Lemon List for the second quarter of 2010 includes 1,584 mutual funds totaling $715 billion in assets. If one of the funds you own is on the list, you need to squeeze that lemon from your holdings.
        Here's a list of this quarter's 10 sourest offenders, ranked by assets.

Name	Assets ($Mil)
Fidelity Diversified Intl FD (FDIVX)	$25,880.83
Vanguard Windsor II Fund-INV (VWNFX)	$20,888.82
Vanguard S/T Invest GR-ADM (VFSUX)	18,668.30
Vanguard S/T Invest GR-INVa (VFSTX)	15,943.64
Vanguard Windsor II Fund-ADM (VWNAX)	12,571.64
American GRW FD of Amer-R3 (RGACX)	12,008.24
Fidelity Disciplined Equi (FDEQX)	9,440.18
T Rowe Price Blue Chip (TRBCX)	9,288.47
American Cap Incm Builder-C (CIBCX)	7,689.00
Fidelity Short Term Bond FD (FSHBX)	7,513.03

        To see the latest edition of the Lemon List, just go to the Lemon List website update at http://www.fabian.com/makingmoneyalert/lemonlist. Hey, all you have to lose is that sour taste in your portfolio."
        Editor's Note: Doug Fabian has been working in the investing field for more than 30 year. He is known for hid timely use of innovative tools, such as exchange-traded funds (ETFs), bear funds and enhanced index to profit in any market climate. Since 1977, Successful Investing has averaged double-digit percentage in any market climate. Since 1977, Successful Investing has averaged double-digit percentage annual gains.
       For more information on Doug Fabian's Successful Investing, One Massachusetts Ave., NW, Washington, DC 20001, 1 year, 12 issues, $249. Visit the web site at www.Fabian.com.