International Board of Standards - Professional Designations - Accredited Education. Creating the World's Leaders in Management ™
A fund's past performance is not as important as you might think. Advertisements, rankings, and ratings often emphasize how well a fund has performed in the past. But studies show that the future is often different. This year's "number one" fund can easily become next year's below average fund.
Be sure to find out how long the fund has been in existence. Newly created or small funds sometimes have excellent short-term performance records. Because these funds may invest in only a small number of stocks, a few successful stocks can have a large impact on their performance. But as these funds grow larger and increase the number of stocks they own, each stock has less impact on performance. This may make it more difficult to sustain initial results.
While past performance does not necessarily predict future returns, it can tell you how volatile (or stable) a fund has been over a period of time. Generally, the more volatile a fund, the higher the investment risk. If you'll need your money to meet a financial goal in the near-term, you probably can't afford the risk of investing in a fund with a volatile history because you will not have enough time to ride out any declines in the stock market.
Don't assume that a fund called the "XYZ Stock Fund" invests only in stocks or that the "Martian High-Yield Fund" invests only in the securities of companies headquartered on the planet Mars. The SEC requires that any mutual fund with a name suggesting that it focuses on a particular type of investment must invest at least 80% of its assets in the type of investment suggested by its name. But funds can still invest up to one-fifth of their holdings in other types of securities — including securities that you might consider too risky or perhaps not aggressive enough.
Bank Products versus Mutual Funds
Many banks now sell mutual funds, some of which carry the bank's name. But mutual funds sold in banks, including money market funds, are not bank deposits. As a result, they are not federally insured by the Federal Deposit Insurance Corporation (FDIC).
USA - Asia - Russia - India - EU - West Indies - China - Indonesia - Latin America - Arabia - Africa
Home HSE instructions FINTECH CAIFP Certified Artificial Intelligence in Finance Professional ™ ACBSP CFM Chartered Financial Manager About Requirements Certifications Board Course Certifications Benefits Online Certification Sri Lanka & The Maldives Recognition Qualifying Degrees Training Providers Howtouse CEO Message Accreditations TUV Accreditation Handbook Mission News Global Advisors Register Dubai UAE INFORMA Training 2019 Events In House Training Speakers About Old Chartered Wealth Manager News Contact Us Ethics CWM Training Program Apply Magazine of Wall Street Contact CWM Chartered Wealth Manager Cert Brazil UBT AMA Reg. Payments Registration NewMembers IP payment Corporate Discount payments HomeCoPY Paper Award Home George Mentz Colorado Springs CEO GAFM - Global Academy of Finance & Management charteredwealthmanager Ghana AFAPayment AFAPPC Application GetCertifiedPPC GetCertifiedPPC2 Stock Markets Training Calendar FINRA MFP Financial Planner AFA Chartered Certified Economist Certified Financial Analyst FINRA SEC Chartered Wealth Manager Training Verify Member indonesia malaysia Guides Informa GAFM Guides Jamaica Membership Governmental Recognition Links Financial Planner Program Chartered Economist CCO Higher Institute IP List Be a Training Provider Management Consulting Jobs Project Management Certifications CWM Chartered Wealth Manager Terms Deans Letter AFA Approved Masters Degrees Copy of Certification Economics Certification Economics Degrees Management Degrees Finance Degrees Accounting Degrees Exams Renew Certification Continuing Ed Awards Letter Renew 2014 Sample Honor Society Trademarks Careers Government Jobs Complaint pics Mentz George Mentz Lawyer Mentz George Colorado USA Speaker Consultant AFA ® Accredited Financial Analyst Certification CTEP ® Trust and Estate Certification CIPM ® Certified International Project Manager CWM ® Chartered Wealth Manager ® AMA ® Management Accountant Certification AMC ® Management Consulting Certification MMC ® Management Consulting Certification Book Chartered Fraud Investigator
Reference to FINRA Certification Guide & Standards