THE FUNDS HOPE TO IMPROVE ON 1977's GAIN.

The article presents an outlook for the U.S. mutual fund industry for 1978. The robustness of the industry in 1977 was helped by factors such as how the popularity of municipal bond funds and corporate bond funds assisted in the selling of more shares than investors redeemed. Many mutual fund portfolio managers believe that returns will be higher because of the continued growth of the U.S. economy and the manageability of inflation and interest rates. The top-performing funds of 1977 include United Services, Strategic Investments, and Resources Growth.