Investor Alert

London Markets Close in:

MarketWatch Personal MarketWatch

March 13, 2007, 9:04 a.m. EDT

Balance long-term results with consistency

Jeff Tjornehoj, senior research analyst for Lipper Inc., says that long-term performance records are important, but don't overemphasize the past or you might wind up with a bad mutual fund. In a radio interview with Chuck Jaffe, MarketWatch senior columnist, Tjornehoj said it was important for investors to see the right balance of history, so that a fund that was good in the distant past doesn't sneak into a portfolio on the strength of long-term numbers that are a poor reflection of what it can do. Tjornehoj suggeseted that consistent returns are just as important as total returns in selecting a fund you can be comfortable with. In other interviews from Jaffe's "Your Money" show, Robert Powell, editor of the Retirement Weekly newsletter, discussed how inflation-protected securities might fit into the mix of possible "default" retirement investments, and financial planner Gregg Rennie of New England Securities talked about how fundamentally-weighted indexes are an attractive alternative to traditional index-based investments.

Link to MarketWatch's Slice.