Wealth Management Report - Living Your Dreams

Mario Gabelli named his microcap fund �Mighty Mites� after a football league for youngsters, with the idea that his stocks, like the players, would get bigger and move up to a higher level.

Gabelli, a bargain-hunter who buys stocks he deems inexpensive, has found enough picks that graduated to the next level, giving the $1.3 billion Teton Westwood Mighty Mites Fund the best-risk adjusted performance among U.S. equity funds over the past decade, according to the Bloomberg Riskless Return Ranking.

Valley Forge, Pa.-based Vanguard reports that the average 401(k) participant invests 60 percent of his or her account balance in index funds.

The study, which looked at defined contribution accounts from 2004 to 2012, found that this percentage doubled for the time period analyzed. This is largely due to the growing popularity of index-based target-date funds, says Vanguard.

The report also found that the assets in actively managed funds, such as money market funds, stable value funds and company stock, declined significantly over the eight-year period.

In 2004, 39 percent of participants were invested exclusively in active funds.

Their performance is converging now, but the stock market often favors one.