One mutual fund is $46.00 per unit and one $26.00 and perform about the same which is better? Does it matter?
2007-05-20 15:48:51 · 3 answers · asked by Ed L 1 in Business & Finance ➔ Investing
The NAV (current price) of the fund is immaterial. Watch how every fund perform individually.
At this point, 5th month, good MF have already made more than 10%. Check out the YTD percentage performance of all the funds available for you to invest in. If there are funds that performed better than yours, don't hesitate to switch yours with it. Depending on the amount, you may diversify it into 3 funds or more. Watch how it perform. Don't leave it there unchecked for months or year. No else cares about it but you, supposedly. If you may, keep a record of each performance once every 15 days so as you can compare and see which one is the deadwood. Don't hesitate for change for good performers.
Good luck.
2007-05-20 16:32:52 · answer #1 · answered by siagnon 3 · 1⤊ 0⤋
Percentages are the only thing that count (but never forget to add in the dividends & capitol gains).
The real test is how does a particular Mutual Fund compare to it's peers. ie., you can't compare a Large Cap fund to a small cap fund, or international or a bond fund. Each one has a place in the portfolio ("Asset Allocation").
MorningStar can help you with Mutual Fund performance (against their peers, over a long time period). In a 401K try to pick funds that have been better than 50% (or better) of their peers. Since your choices are limited... the best thing you can do is have a well defined "Asset Allocation" and check it at least once a year (for rebalancing).
Good luck!
2007-05-20 23:25:14 · answer #2 · answered by Common Sense 7 · 0⤊ 1⤋
idk
2007-05-20 23:22:31 · answer #3 · answered by JT 6 · 0⤊ 0⤋