morningstar

(Podcast) How to Predict Fund Performance

The phrase “past performance is not an indicator of future performance” is a frequently written and spoken legal disclaimer for virtually all investments sold by Wall Street. Yet, hardly anyone from individual investors all the way to investment sales people really act like they believe it. Asset flows inevitably gravitate into funds with the hottest historical performance. And …

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How to Increase Your Odds of Investment Success

Investing and gambling share at least one common thread; it’s all about odds. And depending on how you build your portfolio of investments, you will either increase or decrease your odds of investment success. (Audio) The Stock Market’s Last 10% Correction + How to Judge Performance Properly The latest data from Morningstar’s Active/Passive Barometer illustrates …

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Retirement Plan

Q&A: Is Buying a Multi-Asset Fund Near Retirement a Good Idea?

Multi-asset class funds and ETFs are designed to invest across various asset classes like stocks, bonds, commodities, real estate, and other alternatives. In the ETF marketplace, examples of these types of multi-asset class funds are the Multi-Asset Diversified Income ETF (NYSEARCA:MDIV), iShares Core Growth Allocation ETF (NYSEARCA:AOR), and the iShares Morningstar Multi-Asset Income ETF (NYSEARCA:IYLD). (Audio) Portfolio …

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Beware of Skewed Performance Comparisons

Many people and fund companies still use inappropriate benchmarks for measuring investment performance. Instead of getting truthful results, investors are given a distorted perspective of performance which leads to mistaken conclusions. (Audio) Ron does a Portfolio Report Card on a $26.9 Million Investment Account The mutual fund industry’s (NasdaqGS:MORN) widespread use of peer group comparisons is …

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Don’t Make These Widespread Mutual Fund Mistakes!

“People should only buy mutual funds with experienced portfolio managers that have good long-term track records.” “Investing in highly rated mutual funds with at least 4 or 5 stars is a sure-fire way to choose the best fund.” “Our firm screens thousands of mutual funds to help our clients find funds and managers that have …

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3 Big Shortcomings of Target Date Funds

Around 41% of all 401(k) savers have are using target-date mutual funds (TDFs) and the numbers keep rising. Experts in the financial services industry applaud this trend, but are target-date funds really the panacea to a secure retirement income? TDFs attempt to match a person’s age and risk tolerance with a projected retirement date. For …

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