HOLDRs face off with mutual funds

Business Report Correspondent

Folks who play the stock market are always looking for the next hot item to invest in, even in down times such as these when earnings are slipping, and layoffs and mergers seem to happen every day.

Often, the secure way to go is with a mutual fund in which you, as the investor, own stock in several companies of the same industry, and a broker is making sure the fund is loaded only with performers. Diversification, after all, is one way to hedge your bets. But the associated fees can make mutual funds an expensive tool for…