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Originally Posted by tinapbeana
you might want to try reseraching on mornigstar.com or in the mutual fund section of scottrade.com. for instance, there you can find out that VHGEX(12.07), PHRAX (17.58), and FRSGX(8.12) have all outperformed the S&P 500(8.02) for the past 10 years when it comes to average annual return...
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This is a case of comparing funds to the wrong benchmark. You have to be careful because some funds do this to tout their returns. The funds probably did beat the S&P 500 (I didn't check) for the past 10 years, however their holdings have nothing to do with the S&P 500. VHGEX is a global fund, PHRAX is a real estate fund and FRSGX is a small/mid-cap growth fund. The S&P 500 is made up mainly of large-cap blend/value stocks. The closest it comes to any of these funds is that it contains about 3% mid-cap growth stocks with no small caps and that's about it. You have to compare apples to apples in order to get the right perspective on how funds are performing.