In Brief

DON'T BANK ON MUTUALS To generate bigger profits, more banks are creating their own mutual funds. Yet the typical bank fund has lagged behind the industry average for the past two years. In many cases, it has been the result of ultra-conservative management or late entry into the tech sector. Still, among the rubble, some gems can be found.

FUND -- BANK -- YTD RETURN %
Winners
Galaxy II Utility Index Ret. -- Fleet Banking -- 45.01
Excelsior Energy & Nat. Resources -- U.S.Trust -- 33.59
Brinson U.S. Small Cap Growth I -- UBS Mgmt. -- 25.50

Losers
Excelsior Emerging Markets -- U.S. Trust -- (30.31)
Excelsior Pacific/Asia -- U.S. Trust -- (37.33)
Nations Emerging Markets Inv. A -- Bank of America -- (33.47)

Source: Morningstar

EUROSTRATEGY Last Wednesday the euro hit an all-time low of 0.83 against the dollar, a 29% drop since its inception. If you believe the dollar is overvalued and subscribe to the prevalent view among currency analysts that the trend will reverse in the next 8 to 10 months, now is the time to buy cheap. For instance, EVERBANK.COM offers FDIC-insured deposit accounts and CDs denominated in euros and 29 other currencies. It's a way to diversify your portfolio--but note that it can be risky!

SWEET MUSIC It's hard to know what to buy in today's uncertain equity markets, which is why investors have run to the safety of cash. Not a bad idea. Consider certificates of deposit: they've been enjoying their highest yields in recent years. They're not only insured by the FDIC but generally pay interest rates that are 3 percentage points higher than savings accounts. If you can forgo the cash liquidity and avoid early-withdrawal penalties, the current 3-, 6- or 12-month CDs are attractive.

Best Deals on 6-Month Cds
BANK -- RATE -- MIN. DEPOSIT
Giantbank.com -- 6.82 -- $2,500
BankCaroLine -- 6.81 -- 500
Nexity Bank -- 6.81 -- 1,000
DeepGreen Bank -- 6.78 -- 1,000

Source: Bankrate.com