Stock Funds’ First-Half Returns Could Help Keep the Boom Alive

Stock mutual fund returns again beat safer alternatives in the first half of 1993, which may help keep the fund industry’s incredible boom alive.

The average general U.S. stock fund gained 1.29% in the second quarter after rising 3.29% in the first, according to fund tracker Lipper Analytical Services. The average total return for the first half: 4.58%, or about 3.3 points above what a money market fund paid.

The funds’ first-half gain was only slightly below the market benchmark of 4.86%, as measured by the Standard & Poor’s 500-stock index.

Investors have poured record sums into stock funds since 1990 as low interest rates have fueled a search for higher returns. Stocks’ ability to struggle ahead this year may shape investors’ willingness to commit more money to the funds in ‘93, analysts say.

To help investors decide on the wisest strategy now, The Times will present two special reports:

* On Sunday, ideas for long-term investors and for those hunting for short-term market trends to play.

* On Monday, a look at stock fund returns by category in the second quarter and first half, and the outlook.