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FOLITIC / Mutual Funds
Understand how mutual funds work, compare their costs and risks, and build a disciplined investment process. Follow eight stages from pooled ownership to portfolio construction and ongoing research.
Start with What you own when you buy a mutual fund, then follow the next lesson links. Explore 32 lessons with worked examples, exercises and further reading.
Measuring Performance · All lessons
Separate investment results from cash flows and compare returns fairly.
Intermediate
Total return captures price changes and distributions together. Annualized return translates a cumulative result into a compound yearly rate, which helps compare periods without assuming that...
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Your personal investment result depends on when money enters and leaves the fund. The fund's published return describes its investment performance under a stated convention, not...
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Risk includes the size and timing of losses, not only the average return. Volatility, drawdowns and recovery periods answer different questions about the experience of owning...
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An active fund's ranking is an observation, not an explanation. Assess whether its results came from a repeatable process, the risks it took, its costs or...
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