How To Fix Poor Mutual Fund Returns
Good mutual fund returns are hard to come by these days. Most actively managed funds are don't give their investors market-beating returns. It shouldn't come as a surprise though. Regulations have have helped this industry (and also hurt it), and as a result, this has pushed down returns for many individuals.
You can try to get better mutual fund returns, however, don't expect these products to be a silver bullet for your retirement.
Your mutual funds are probably posting inflated returns. By not paying attention to past performance numbers that are posted by the fund company, and instead asking an independent adviser to help you calculate your true return, you'll get a better idea of how you're doing. The fund typically shows you the simple average instead of the compound average which will result is higher returns on paper. It's good for business but not for your portfolio.
Unless you have a scientific calculator, you're almost certainly not going to get too far.
Another way to make your investments perform better for you may be just to get out of the fund. I know that's not really boosting the return of the fund, but other investments can offer better advantages. By limiting yourself to just mutual funds, you run the risk of limiting yourself to low returns.
One final way of getting more out of your fund is to choose funds that invest in small cap companies. You could also do well by just investing in smaller funds. A smaller mutual fund would probably be the essential point here. Think about how easy it would be for a mom and pop shop to double in size as versus a giant corporation like Walmart.
You can try to get better mutual fund returns, however, don't expect these products to be a silver bullet for your retirement.
Your mutual funds are probably posting inflated returns. By not paying attention to past performance numbers that are posted by the fund company, and instead asking an independent adviser to help you calculate your true return, you'll get a better idea of how you're doing. The fund typically shows you the simple average instead of the compound average which will result is higher returns on paper. It's good for business but not for your portfolio.
Unless you have a scientific calculator, you're almost certainly not going to get too far.
Another way to make your investments perform better for you may be just to get out of the fund. I know that's not really boosting the return of the fund, but other investments can offer better advantages. By limiting yourself to just mutual funds, you run the risk of limiting yourself to low returns.
One final way of getting more out of your fund is to choose funds that invest in small cap companies. You could also do well by just investing in smaller funds. A smaller mutual fund would probably be the essential point here. Think about how easy it would be for a mom and pop shop to double in size as versus a giant corporation like Walmart.
About the Author:
About the author: Only so much information can be covered in one article. If you would like more detailed information about any aspect of personal financial planning, please visit David's website.
posted by Credit Counseling at
7:11 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home