Who are the top ten mutual fund managers of the top ten mutual funds? I have been given advice---continued---

Question

from someone who has their pulse on the market. He follows the mutual fund manager--not the mutual fund.

Any thoughts?

Answer 1

I agree with the comment about "the past".

Studies have shown investing in the funds currently with the best returns is the worst idea.  By the time they are the "top" they have already made their money and set up for a fall. It is too late.

For example, the top funds in 1999 and 2000 were the internet funds and if you invested in them then you would lost half your money in the next couple of years. And many people did just that.

You CAN invest in a good manager but only if you have a long time frame in which to judge them, like 10 years or more. Most fund managers don't last that long and rarely do they show up as being the "top" for a 1 year or 5 year time frame.

Answer 2

Before picking a "Mutual Fund" you need to know your "Asset Allocation". This would be derived from your risk tolerance, time horizon and goals.

It's nice to know who the "top managers" are, but that's the past. Some of the best Mutual Funds are not run by "Managers"..... they're managed by committee's.

The number one indicator to  investing in Mutual Funds s the correct "Asset Allocation".  People who chase managers or performance tend to wind up with last years winners.

Read;

Mutual Funds For Dummy's