Here’s How to Look at Investment Returns the Right Way?



When you're considering a mutual fund that you want to buy, you might look at its three-, five- and 10-year performance record. But what you really need to know is how the investment performs in different economic environments. Listen to Ric Edelman explain why historical returns can be misleading, especially right now.

An index is a portfolio of specific securities (common examples are the S&P, DJIA, NASDAQ), the performance of which is often used as a benchmark in judging the relative performance of certain asset classes. Indexes are unmanaged portfolios and investors cannot invest directly in an index. Past performance does not guarantee future results.