• Revenue Cycle Management
  • COVID-19
  • Reimbursement
  • Diabetes Awareness Month
  • Risk Management
  • Patient Retention
  • Staffing
  • Medical Economics® 100th Anniversary
  • Coding and documentation
  • Business of Endocrinology
  • Telehealth
  • Physicians Financial News
  • Cybersecurity
  • Cardiovascular Clinical Consult
  • Locum Tenens, brought to you by LocumLife®
  • Weight Management
  • Business of Women's Health
  • Practice Efficiency
  • Finance and Wealth
  • EHRs
  • Remote Patient Monitoring
  • Sponsored Webinars
  • Medical Technology
  • Billing and collections
  • Acute Pain Management
  • Exclusive Content
  • Value-based Care
  • Business of Pediatrics
  • Concierge Medicine 2.0 by Castle Connolly Private Health Partners
  • Practice Growth
  • Concierge Medicine
  • Business of Cardiology
  • Implementing the Topcon Ocular Telehealth Platform
  • Malpractice
  • Influenza
  • Sexual Health
  • Chronic Conditions
  • Technology
  • Legal and Policy
  • Money
  • Opinion
  • Vaccines
  • Practice Management
  • Patient Relations
  • Careers

The right yardstick for measuring a mutual fund

Article

I have a balanced mutual fund that has been underperforming the S&P 500 index for a while now. Should I dump it?

I have a balanced mutual fund that has been underperforming the S&P 500 index for a while now. Should I dump it?

Not based on that comparison. Balanced funds contain a mixture of equities and bonds, not just stocks in the S&P 500. Instead, compare your fund's relative risk-adjusted performance to that of other balanced funds. You can find those figures at http://www.morningstar.com. Click on Total Returns in your fund's listing, and under Performance History look for "% Rank in Category." Check to see which performance quartile your fund falls into. If it's in the bottom quartile-meaning it ranks higher than 75-and has been for more than a year, it's probably time to sell it.

Related Videos
Mike Bannon - ©CSG Partners
Jolie Apicella, JD
David Zetter gives expert advice