Comparing Mutual FundsMutual Funds
When you are comparing mutual funds, you should remember that all mutual funds are not created equally. If you are comparing fund’s performance, you should measure them among asset class and industry level. A mutual fund specializing in technology sector growth equities is not equally comparable to an investment grade sovereign bond fund. Performance of asset classes changes along industry lines and investment categories. If you want to compare a fund’s ability to perform, relate it among its asset class. For mutual funds which can be closely tied to an index, you can compare the fund with its index or benchmarks of highly similar performance.
When you have found accurate benchmarks for comparison, you should note that you are not looking for absolute first place performance. Many funds which are successful in the short run cannot extend their performance over the long term. Most of the first place funds are highly volatile and return to average or below after a correction. You are looking for funds with stable market returns, or slightly above average performance over the long term. Since between sixty and eighty percent of funds perform below the market in any given year, meeting index or market returns on a stable basis outperforms most available funds. This usually means an index fund. If not, you need a management team which is competent and is able to provide consistent returns close to the index, benchmark, or industry average. A fund which excels above industry average during upturns then crashes during downturns is not necessarily well managed.
Did we help you? Vote with a Crypto-Donation!
Donate Bitcoin Cash
International Economic Analysis:
- Major Currency Economic Summaries
- Performance of Major Imports and Exports
- Mandates of Central Banks versus Expectations
- Performance Indexes of Major Economies
- Economically Correlated Currency Projections
- Large Funds Currency Sentiment Readings
- List of Technical Indicators to Look For
- Occasional: Foregin Exchange Technicals Markups
American Markets Analysis:
- Summaries of American Economic Structure
- Performance of Major
- Federal Reserve Mandate versus Expectations
- Performance Indexes of U.S Economy
- Economically Correlated U.S Dollar Projections
- Large Trading Fund Index Sentiment Readings
- Market Wide Earnings Versus Valuations
- Fundamental Ranking of U.S Business Sectors
- Best and Worst Future Consensus Estimates
- Occasional: Firm Fundamental Strength Report
- List of Technicals to Look for While Trading
Investment and Finance, Serviced by Amazon
No Results Found
The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.