![]() Its findings seemed to defy the standard warning that “past performance doesn’t predict future returns” and prompted many people to scour past mutual fund returns in hope of scoring big future profits. We did exclude bond and money market funds, however, because that's not where you go for high performance.That study, “On Persistence in Mutual Fund Performance,” by Mark Carhart, then a professor at the University of Southern California and now an asset manager, found that funds that rose in one year tended to rise in the next one, mainly because the stocks they held did the same thing. ![]() ![]() Index funds don't aim to be top performers, and international funds are in a long-term performance drought. We didn't exclude them – they just weren't in the top 25 top equity funds. You'll note there are no index funds, nor any international funds. Going for a minimum of two decades eliminates some of the bias from a decade-long bull market, and adds in at least two major bear markets. and/or international stocks alike – with at least a 20-year record, and ranked them based on returns since inception. We looked at the records of all U.S.-listed stock funds – holding U.S. Here are the 25 best mutual funds of all time. And, thanks to the longest-running bull market in history, everyone's 10-year record looks great.īut it's another thing to outperform the competition over the entirety of a fund's life. Even if you spread the awards among the 8,000 or so garden-variety open-ended mutual funds, there would be plenty of opportunities for bragging rights. Morningstar counts 110 mutual fund categories. "Best five-year record." "Best three-year record for value funds." "Best 10-year record for growth funds with at least $1 billion in assets." Mutual funds have a mind-numbing selection of ways to claim bragging rights. If you're seeking out the best mutual funds, keep your wits about you. ![]()
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