it seems like on vanguard.com and fidelity.com, for all the mutual funds the performance significantly diminishes by the 10th year...
like past performance indicates on almost all of the funds from both sides a trend of 1 year: 14% 5: 13% 10: 7%
does this mean after 5 years i should cash in the money and put into another fund or somthing?
2007-11-23 17:01:58 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
No, it simply indicates that for the previous one-year period (a bull market) the return was 14%. Over the previous 10 years (which includes "up" and "down" periods), the overall return was 7%. It doesn't mean that after 5 or 10 years, the fund "goes bad"; it indicates that no rapid-growth period can sustain forever.
2007-11-24 02:49:08 · answer #1 · answered by Anonymous · 0⤊ 0⤋
No, you may want to put your money in mutual funds if you are investing for the long term. The numbers that you gave is the how the specific fund performed over that period. Next year if you were to look at this fund. Those numbers most likely will be very well different.
2007-11-24 05:00:49 · answer #2 · answered by Agency Builder w/ BTID 2 · 0⤊ 0⤋
No.
The full answer would be too lengthy. The bottom line is, you need to spend some time reading about Mutual Funds. Start with the "dummy" series on them.
2007-11-24 01:09:55 · answer #3 · answered by Common Sense 7 · 1⤊ 0⤋
historically mutual fund boosts a growth rate of 10% annually.
just may sure it's one of those diversified mutual fund you're investing in.
2007-11-23 17:10:48 · answer #4 · answered by HanZ 6 · 0⤊ 0⤋