A mutual fund's total return investment quality is evidenced by relatively consistent positive performance as compared to its peers, its category benchmark and an appropriate broad market index, over five- and 10-year periods, preferably the latter.
Historical comparative data is useful to investors as a reasonable basis, albeit not a guarantee, for forming expectations about future investment results. Using historical patterns is better than depending on guesswork about what's going to happen in the future.
Mutual fund investors would be wrong to completely disregard past fund performance as a predictor of future performance. At the same time, do not base a fund selection entirely on past results or be seduced by eye-popping, extraordinary gains, which may be temporary. There are a number of fund investment qualities to be considered in evaluating a mutual fund investment.
To help readers get a quantitative fix on mutual fund annualized total return numbers, below are the fund category averages as per Morningstar's FundInvestor year-end 2005 fund statistics for its universe of 500 of the most widely traded mutual funds:
|Fund Type||5-Year %||10-Year %|
|Large Cap Growth||-3.4||7.0|
|Large Cap Blend||0.5||8.1|
|Large Cap Value||4.0||8.9|
|Mid Cap Growth||0.0||8.5|
|Mid Cap Blend||8.1||11.7|
|Mid Cap Value||9.4||11.4|
|Small Cap Growth||2.2||8.2|
|Small Cap Blend||9.9||11.2|
|Small Cap Value||135||2.8|
Return to the Main Menu.
Scoring Fund Performance Data
ETFs & Mutual FundsDifferent funds invest in companies with different market caps. Find out which is right for you.
Managing WealthBy Richard Loth (Contact | Biography)A long-term fund performance record, preferably over a 10-year period, provides the best indicator of a manager's investing abilities. Accordingly, one of ...
ETFs & Mutual FundsDiscover why some mutual funds choose to close to new investors, and learn about some of the factors that go into deciding whether to close.
ETFs & Mutual FundsWhat to really look for when you're deciding on a mutual fund.
Personal FinanceFind out the differences between mega-, large-, mid- and small-cap stocks and how each suits different investing styles.
Managing WealthFind out what to expect from small-, mid- and large-cap stocks in 2016, learn and why markets might not perform much better than 2015.
Managing WealthNo matter what type of investor you are, there is bound to be a mutual fund that fits your style. According to the last count there are more than 10,000 mutual funds in North America! That means ...
ETFs & Mutual FundsLearn which mutual funds are the top rated, and compare each fund based on performance, ownership expenses, diversification of holdings and minimum investment.
ETFs & Mutual FundsLearn about UBS's asset management business, past mutual fund performance and the top three UBS mutual funds to consider for retirement diversification.
ETFs & Mutual FundsHow to find a portfolio that will survive when the bulls stop charging.