In mutual funds, do you advise following managers with the best track records,or is it all a matter of luck?

Question

Or have you found any other better strategy?

Answer 1

I'm surprised that so many people are providing you with answers that are merely opinions. This is a well researched areas, so we need not just make guesses.

According to academic studies, there are a small number of mutual funds that continue to outperform the benchmarks. For the vast majority of funds luck is a big factor. The exception are funds that do the worst, they are not unlucky -- they lack skill.

Answer 2

Generally mutual funds do no better than random selections in the stock market. Some strategies do work. Value Line is available at most libraries. Their recommendations are better than random selections. There are also other strategies. Look for Investment clubs. Join one if possible. There are National Associations of Investment Clubs. There is also an organization of independent investors.
A mutual fund will always charge you a portion of your net asset value. This is a big percentage of the increase you hope to make. Look at the BetterInvesting website.

Answer 3

A good track record is important but 75 % of all funds lag there bench mark so you would be better off going with an exchange traded fund with low costs or index fund with LOW COSTS and then you can match the market not lag it like 75 % of all funds do or you might get lucky and fall into the 25 % but the odds are against that.

Answer 4

Mutual Funds are a racket in most cases. Do some research and find 3 or 4 different companies and buy stock in them on Ameritrade or another online site. Right now I own BASF, Corning(GLW), General Maritime(GMR) and Billiton(BHP). Corning and GMR have each given me 10% returns in the past 2 months, well above mutual fund returns. Plus, GMR provides almost 15% yield per year; You won't get this kind of performance from a mutual fund and the fees they charge suck. If you are investing for your future, you might as well invest some extra effort and research some blue chip companies that will perform better than the rip off mutual funds. Just my opinion.

Answer 5

According to finance theory, it is a matter of luck once you have selected a risk level. That said, many managers appear to have excellent long term track records, and it would seem to be a pretty easy screen to leave out the losers.

Current conventional wisdom is to look for a passively managed fund with low expenses.

Answer 6

I don't look at the managers too much. I really look at the 5-10 year performace of the fund. I like funds that have been around longer than 15 or 20 years.

Answer 7

Alot of the managers are talented, they have an eye for market changes, look at Warren Buffet. However, the best performing in terms of reliable returns are funds are ones that track the whole marktet or entire sectors.

Answer 8

If you follow the market, and most market managers do, then they can tell what its the best mutual funds. I prefer priamerica funds, i have had the best luck with them, the best returns, and the best managers to work with.

Answer 9

I've plotted good fund managers. I've plotted good CEOs. They seem to be in the lime-light for a short time, then they become deadbeats like the rest of us.

I have heard "Go with LUCK", so I did. I bought some stocks in the top Casinos, like MGM and Sands and Harrahs. I did OK. Dang it, if Luck isn't good.

Answer 10

I say you can't win a game that is fixed. After the Wall Street scandal, which took place in the late 90's and early 2000's, I'm never going to invest in the stock market again. Their just a bunch of unsrupulous, lying, manipulating law breaking assholes ! Invest in real estate !