• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint

Performance

The first issue is the pursuit of outstanding performance in the face of mediocre or poor performance, or at least inconsistent performance. Most investors are choosing mainly actively managed funds in response to popular press articles touting the recent performers that stand out. Investors also use such criteria as Morningstar ratings. But should they be doing so, or simply using index funds? If they are going to buy actively managed funds, how should these decisions be made?

Insights

Much of the disappointment that investors experience in the area of mutual fund ownership arises from the issue of performance. Investor expectations get formed about what they should earn from a particular fund, often based on what the fund earned in the past. Additionally, investors are constantly exposed to ratings of mutual funds and articles about the top funds one should own now. The end result is that many investors are chasing performance, and most end up disappointed.



PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint