Mutual funds performance reports are readily available on the internet for free! You have already taken the wise step of searching out good mutual funds, rather than taking advice from your sister-in-law at Thanks giving dinner.When 75% of mutual funds don’t beat the annual market averages, you obviously need to be wary of which funds you are investing in.
As you begin your online search for data, the good news is that there are a variety of places to get performance data for mutualfunds and ETFs. And most of them are free. It doesn’t matter which type of investment strategy you are following.If you are a ‘buy and hold’ person, which I’m not, then you are searching for the funds which have the best 10-15 year averages. Then if the same fund manager is still in place, then I would buy those funds.By simply clicking on the fund name on any internet-based performance report, it will give you information on the fund, including who the fund manager is and for how long he has been doing it.If it doesn’t say, then telephone their client services line and ask.
If a mutual fund has an excellent ten year average, but the fund manager has just retired, then I would pick a different fund.If you are not a ‘buy and hold’ mutual fund investor, then maybe you follow a momentum strategy and you try to stay invested in the top funds over a shorter time period. Then you would want to look at one year return data and shorter to identify your possible investments.So where should you look?
Canadian ETF / Mutual Fund Reports
In Canada, the source for this type of data is the Globe and Mail Globe Fund site. It has all the information necessary to follow either a ‘buy and hold’ investing system or a momentum one. If you wish to look elsewhere, the mutual fund company websites themselves are the next best option.
American ETF and Mutual Fund Reports
In the United States, I have found that the mutual fund company web-sites often have the best return data. There are many large independent financial sites like Google, Bloomberg, Reuters etc., which also have mutual fund and ETF return information.However, these site’s return data are not always in the format necessary to follow a momentum system like most successful investors do.
And finally if you don’t mind paying a monthly membership fee for you data, then Morningstar is probably the most comprehensive US site.No matter which investing system you follow, the key is doing a bit of research on ETF and mutual funds performance and understanding why you are buying the funds that you are.