After a dismal 1998, the performance of Franklin Templeton Group's mutual funds has bounced back -- and the cash outflows from them, massive earlier this year, have slowed.

A case in point: Franklin's famed midcap value fund, Mutual Shares. In 1998 the $8.6 billion fund delivered a measly 0.01% return and trailed its peers by 5 percentage points, according to Morningstar Inc. Investors yanked a net $653 million out of the fund last year and more than $1 billion more in the first quarter of this year, according to Financial Research Corp., Boston.

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