Top Mutual Fund of the Month

Top Performing Mutual Fund as of June 2010

Our highest scoring mutual fund for the month of May 2010 was :

  • Fidelity Select Transportation –  b shares (Stock Symbol: FSRFX)

Here are the performance numbers for the top performing fund:

  • Rank last month #4
  • 1 month return –  (5.5%) negative
  • 3 month return – 12.6%
  • 6 month return – 31.1%
  • 12 month return – 66%

Here are a few other data points for this fund that we believe are important factors to consider if you are thinking of investing in it:

  • Performance During Bear Market – 2007 to 2009 :   (58%) Negative over period of time
  • Performance During Bull Market – 2002 to 2007 :   180%

Again please keep out methodology in mind, here is a synopsis:

  • Our time frames for analysis is a little different than many other publications.  We do not believe that high rates of return measured over very short term periods is meaningful.  Even a Monkey can throw darts and win a over a short period, but longer term results takes strategy and smarts and wisdom.
  • We also eliminate funds that do not have a long term track record.  We don’t list funds unless they have a long historical record.  This tends to eliminate the charlatan flash-in-the-pan types of investment vehicles that happen to get lucky.
  • These are the top performing mutual funds, i.e., funds with the highest rate of return when measured as an average return over a combined period of 1 month, 3 months, 6 months and 12 months as of 30 April, 2010.

All the best to you.  Happy investing.

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Be the first to comment - What do you think?  Posted by admin - June 4, 2010 at 1:49 pm

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Top Performing Mutual Fund – As of May 2010

As of April 30, 2010 – Best Stock Fund is (Drumroll Please) :

  • Profunds UI Small Cap – Symbol UAPIX

Before you move away from this page of the best performing Mutual Funds, we need to explain how we define “best performing.”  In the investment world and particularly, mutual fund world, “best performing” can be measured in a myriad of ways.

We know you just want to bottom line, but the bottom line needs explaining. First, let’s define “performance.”  This is rather easy because performance for most people, including us, simply means highest return.  That is, the particular fund had the best return of every dollar invested.  However, defining “best” is not so simple

Time Frame of Performance:

For example, we need to define the time frame of the return – is it the top performing mutual fund this month, last year, over the past 5 years, or something else.

Riskiness of the Investment:

What do we mean by risk?  Mutual fund investments are divided up into asset classes.  And each asset class has a different risk/return profile (sorry folks, there is no free lunch).  I’m afraid you can’t have your cake and eat it too.  There is no such thing as a low risk investment that also has consistently higher returns.

It is not meaningful, therefore, to compare bond mutual funds in the same light as stock mutual funds.  We have to compare apples to apples.  As you will see, investments have a different return depending on the asset class of the investments.  What we mean by this is that, for example, a stock mutual fund generally has a higher return over a longer period of time but tends to fluctuate wildly over the short term – therefore it is usually considered “riskier.”  Bond funds, on the other hand, tend to have lower returns over long periods of time, but they do not fluctuate as much from year to year – therefore they are generally considered less risky.

If your tolerance for risk is low, you will want to invest in less risky investments such as bonds.  But you will need to be prepared to have lower returns in exchange for greater stability.

Bottom Line:

So, what’s the bottom line.?  I am sure you are saying, “just show me the results already!”  Well, we will list them here, but be sure to read the explanation so that you know how we derived at the results.  You may very well see a different list in other publications, but you need to understand that this is because our methodologies of measuring “best performance” is different.

As of April 30, 2010 – Best Stock Fund is (Drumroll Please) :

  • Profunds UI Small Cap – Symbol UAPIX

Our Methodology Explained:

Our time frames for analysis is a little different than many other publications.  We do not believe that high rates of return measured over very short term periods is meaningful.  Even a Monkey can throw darts and win a over a short period, but longer term results takes strategy and smarts and wisdom.

We also eliminate funds that do not have a long term track record.  We don’t list funds unless they have a long historical record.  This tends to eliminate the charlatan flash-in-the-pan types of investment vehicles that happen to get lucky.

These are the top performing mutual funds, i.e., funds with the highest rate of return when measured as an average return over a combined period of 1 month, 3 months, 6 months and 12 months as of 30 April, 2010.

There you have it.  Stay tuned for updates over the coming months.

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Top Performing Mutual Fund July 2010

Our highest scoring mutual fund for the month of July 2010 was once again a Fidelity Fund:

  • Fidelity Real Estate – b shares (Stock symbol: FRESX)

These guys at Fidelity sure are smart, aren’t they?  I guess when you have that many people managing that many different “high risk” funds, you can’t help but get a few winners every month.  Of course, along with the one or two winners, you also get a whole bunch of dogs…which Fidelity also has in spades.

Anyway, I digress.  Let’s continue with the details:
Rank last month – 4th
1 month return – 9.7%
3 month return – (1.4%)
6 month return – 24.3%
12 month return – 63.1% !!!!!

Be sure to read our last post to get the details on how we rate these funds.  Happy investing.

top performing Mutual fund company…once again

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Be the first to comment - What do you think?  Posted by admin - August 12, 2010 at 1:16 am

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