Go to the Globe and Mail homepage

Jump to main navigationJump to main content

(Arpad Benedek/Arpad Benedek / iStockphoto)
(Arpad Benedek/Arpad Benedek / iStockphoto)

Mutual fund basics

Understanding fund performance Add to ...

How a fund has performed in the past can’t tell you how it will perform in the future. But it can give you an idea of how the fund has performed in different market conditions. It can also tell you how the fund compares to:

Fees reduce the return on your investment. The management fees and operating expenses (MER) paid by a fund are reflected in its published rate of return.

Where to find performance information

  • Websites of mutual fund companies

  • Websites that compare mutual funds, like Globefund or Morningstar

  • Management reports of fund performance – the annual and semi-annual performance reports that mutual funds must issue. They include the fund’s returns for various periods and a discussion about what affected the fund’s performance in the past year. They're available from:

Warning: Don't chase performance. Just because a fund did well last year doesn't mean it will achieve the same return this year. Make sure it fits with your investment goals and your other investments.

Content in this section is provided in partnership with Investor Education Fund, a non-profit organization founded and supported by the Ontario Securities Commission that provides unbiased and independent financial tools to help Canadians make better money decisions. To find out more, go to: GetSmarterAboutMoney.ca

Follow us on Twitter: @GlobeInvestor

 

In the know

Most popular video »

Highlights

More from The Globe and Mail

Most Popular Stories