Part 2. Past Performances of a Fund
You can find a fund's past performances - 1-year, 3-year, 5-year, or even 10-year returns at most financial websites. You can also find a table or a chart comparing the return of the mutual fund with that of its benchmark index, like the table and chart below.
A common investment goal is to choose a fund whose return at least doesn’t underperform your investing goal. However, every investor needs to remember - past performance may not repeat in the future.
In part 3 of our fund analysis, we will look at how to evaluate a fund's risks.