Falling Dollars Gives Rise To More Foreign Currency Mutual Funds

Until just two years ago,Franklin Templetonhad the only foreign currency fund in the market. But since the U.S. dollar sputtered in 2004, others such funds are popping up, and now more companies are likely to cash in on such funds,The New York Timesreports. The foreign currency mutual funds, says theTimes, appeal to investors who want to guard against currency shifts and want greater portfolio diversification, but are not likely beneficial to those who already have big holdings in foreign stock or bond funds. Joining Franklin in the field is theMerk Hard Currency Fundas well as offerings byProFundsandRydex. Performance has been a mixed bag: While the Franklin and Merk offerings have risen in the mid-6% range so far this year, funds by Rydex and ProFunds have lost 8.2% and 3.6%, respectively.