Archive for May 28th, 2006

Total Return: Are Investors Being Misled?

Mutual funds are sold primarily on the basis of ‘performance’ measured by historical ‘total return’. The famous Morningstar rating system is based on ‘total return’, in this case ‘risk-adjusted total return’ relative to funds of the same asset category. The average American mutual fund investor is accumulating resources for retirement, say 20 or 30 years hence. […]

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