Financial scholars have been studying mutual-fund performance for at least a half century, and they are agreed on some points:-
(a) The average fund does not pick stocks well enough to overcome its costs of researching and trading them;
(b) The higher a fund's expenses, the lower its returns;
(c) The more frequently a fund trades its stocks, the less it tends to earn;
(d) Highly volatile funds, which bounce up and down more than average, are likely to stay volatile;
(e) Funds with high past returns are unlikely to remain winners for long .
Commentary by Jason Zweig - The Intelligent Investor by Benjamin Graham
No comments:
Post a Comment