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One Method Fund Companies Use To Overstate Performance

Thursday, January 12, 2012 - 7:12 AM
This USA Today article focused on new 2011 mutual funds that are designed to limit stock market risk. However, I found this excerpt most revealing about the mutual fund industry:
Fund companies often merge poorly performing funds into larger, more successful ones, and 211 funds vanished through mergers last year.

What happens to the records of liquidated and merged funds? They just vanish, making the overall record for funds look better than it really is.

Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708