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sohag hasan
Jul 16, 2022
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About the story of cost, we told readers how to charge the internal deduction in the previous article , and the cost will delay our financial freedom . However, the cost is not only the harm of accumulated wealth, there is another kind of cost. It can be used to predict the good or bad performance of the fund in the future. is it possible? true or false? There are so many technical indicators on the market, but I didn't expect that the cost can also be used as an indicator? Costs do have the power to predict future performance. Predictive power of data justification costs According to MorningStar's research on mutual funds from 2010 to 2015 , they divided funds into five groups according to the level of cost, and calculated Shadow Making fund groups with different costs from low to high. Funds can outperform similar investments in total return performance, a number they define as the total return success rate. It is worth noting that the calculation of this success rate includes another condition. The fund must be alive during the calculation time , which means that if a fund is merged by other funds or is liquidated, it will not be counted. This calculation method will exclude funds that are more disadvantaged in this range, so the data on the book will be beautified for the fund. The statistical results are shown in the following figure: More about this source textSource text required for additional translation information Send feedback Side panels
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