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The Big Screen: Consistent Outperformers in Big-Cap Growth and Big-Cap Value Funds

 

If one road home is pocked with occasional and deep potholes and another is smooth as a wedding cake, you know which you'll choose. The same principle can apply to picking a stock fund.

Screen Gems: High Returns, Low Fees
Mid-Cap Growth Funds
Large- Cap Growth Funds
Tech Funds

It's a good idea to look for a fund that beats its peers over the last five years, but stopping there overlooks a key question: How rough was the ride? Sure, half the funds with five-year records beat their average peer and the other half doesn't; but a fund that beats the average in each of those years is a rare and good find. That's because, like stocks, most funds tend to perform in bursts. This might be natural, but if you need your money in a tough year it can be a real drag. Hence the advantages of a consistent performer. ...

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