Mutual Funds

American Funds and the Limits of 10-year Return Figures

How does an investor go about picking a good mutual fund to buy for the long haul - one that will leave you with more money than a passively-managed fund? Though we've heard countless times the caveats about "past performance," it's one of the first things most people look at when sizing up a fund. A recent look at Growth Fund of America (GFA) shows how even long-term performance figures can be poor indicators of how a mutual fund has performed for investors who invested money along the way.

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