Evaluate the historical investment performance of mutual funds and ETFs, but only AFTER using other screening criteria
Choosing only from among mutual funds and ETFs that have performed very well in the past can lead to significant selection mistakes and inferior personal portfolio returns. Previous superior or average fund performance simply does not predict similar fund performance in the future. However, there is modest evidence that substantially inferior past fund performance is more likely to lead to continued inferior performance in the future, which is probably due to the excess costs of substantially inferior funds.
Please read this article on our new Best No Load Funds website for more information:
Screen Out Inferior Mutual Fund Performance
| Other articles in this category |
| Rational selection of bond mutual funds and equity mutual funds -- overview |
| The most effective strategy to increase your mutual fund and ETF investment returns |
| Evaluate historical investment performance, but only after using other investment screening criteria |
| Choose mutual funds and ETFs with lower investment management expenses |
| Avoid mutual funds and ETFs with sales loads, commissions and 12b-1 fees |
| Avoid mutual funds with higher investment portfolio turnover |
| Avoid very large actively managed mutual funds |
| Choose sufficiently mature mutual funds and ETFs |
| Choose mutual funds with a minimum economical portfolio size |
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