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From: miller@rochester.UUCP (Brad Miller)
Newsgroups: net.invest
Subject: Picking a mutual fund
Message-ID: <11888@rochester.UUCP>
Date: Thu, 26-Sep-85 19:02:05 EDT
Article-I.D.: rocheste.11888
Posted: Thu Sep 26 19:02:05 1985
Date-Received: Tue, 1-Oct-85 10:08:31 EDT
Distribution: net
Organization: U. of Rochester, CS Dept.
Lines: 15

one thing to remember when trying to pick a mutual fund:
Mutual fund shares are shares of a much larger portfolio of
common stocks. If the underlying stocks do well, so does the mutual fund.
Consistently poor performance by a fund is usually indicative of bad
management, but TEMPORARY poor performance (say in a quarter or even a year)
can be considered a buying opportunity: the manager may be taking positions in
stocks that are currently underperforming the market, but he expects to out-
perform the market in the longer term. Buying mutual funds based on who has
the best quarterly gain is something like buying the stock with the largest
quarterly increase: you are probably buying at a peak.

Brad Miller
-- 
miller@rochester.arpa	miller!rochester
University of Rochester CS Dept. Lab Manager


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