Comments on: Top Eight Characteristics of a Great Mutual Fund http://cashmoneylife.com/top-eight-characteristics-of-a-great-mutual-fund/ Money Management, Small Business, Career Wed, 23 May 2012 21:16:10 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: NtJS http://cashmoneylife.com/top-eight-characteristics-of-a-great-mutual-fund/#comment-13201 NtJS Tue, 09 Sep 2008 01:28:20 +0000 http://cashmoneylife.com/?p=910#comment-13201 1 and 2 are the most important for me - maybe why there are listed 1 and 2? - at lest in the screening process. I like to evaluate past performance to see how they've weathered storms in the past - 9/11, dot-com bust. If they've produced returns in the past where many others have failed, then you've got my attention. 1 and 2 are the most important for me – maybe why there are listed 1 and 2? – at lest in the screening process. I like to evaluate past performance to see how they’ve weathered storms in the past – 9/11, dot-com bust. If they’ve produced returns in the past where many others have failed, then you’ve got my attention.

]]> By: Ryan http://cashmoneylife.com/top-eight-characteristics-of-a-great-mutual-fund/#comment-12973 Ryan Fri, 05 Sep 2008 02:09:13 +0000 http://cashmoneylife.com/?p=910#comment-12973 <strong>Start-Up:</strong> Good point on past performance. It may not be indicative of future performance, but you may wish to know how a fund performed anyway. Then use that information in conjunction with information about the fund manager, the fund's current goals (are they aligned with past goals?), the assets in the fund, current market conditions, etc. There are many factors to consider. But I agree, fees and loads are one of the most important factors to consider. Start-Up: Good point on past performance. It may not be indicative of future performance, but you may wish to know how a fund performed anyway. Then use that information in conjunction with information about the fund manager, the fund’s current goals (are they aligned with past goals?), the assets in the fund, current market conditions, etc. There are many factors to consider. But I agree, fees and loads are one of the most important factors to consider.

]]> By: Start-Up http://cashmoneylife.com/top-eight-characteristics-of-a-great-mutual-fund/#comment-12933 Start-Up Thu, 04 Sep 2008 21:16:06 +0000 http://cashmoneylife.com/?p=910#comment-12933 I completely agree with points 2 and 4. Fees and loads only reduce your return. I think looking at past returns even over the long term is a bad strategy. First of all, fund managers are most likely not going to stick with a fund for the long periods you're looking at. Also, funds tend to revert to the mean. Previous returns are not as important as fees and loads when determining which mutual funds to invest in. I do think looking at past performance can help when looking strictly at consistency. I agree with point 7 as well. It is extremely hard to effectively manage funds with assets that are too large and that diminishes returns. I completely agree with points 2 and 4. Fees and loads only reduce your return.

I think looking at past returns even over the long term is a bad strategy. First of all, fund managers are most likely not going to stick with a fund for the long periods you’re looking at. Also, funds tend to revert to the mean. Previous returns are not as important as fees and loads when determining which mutual funds to invest in. I do think looking at past performance can help when looking strictly at consistency.

I agree with point 7 as well. It is extremely hard to effectively manage funds with assets that are too large and that diminishes returns.

]]> By: Hank http://cashmoneylife.com/top-eight-characteristics-of-a-great-mutual-fund/#comment-12899 Hank Thu, 04 Sep 2008 12:38:01 +0000 http://cashmoneylife.com/?p=910#comment-12899 Ryan, Thanks again for letting me guest post on Cash Money Life. I hope your readers like it. Ryan,

Thanks again for letting me guest post on Cash Money Life. I hope your readers like it.

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