Friday 17 December 2010

Getting real about returns

I have added the link below to highlight that a fund may outperforms the market in the long run and yet many of the investors may lose money due to various reasons. "After he retired at the age of 47, Lynch reported that, wonder of wonders, most of the investors in the Fidelity Magellan Fund lost money during his stellar run! They had bought into the fund when the market was doing well. Obviously, they paid a high price at that time as the market was peaking. Unfortunately, they panicked and sold out during the times the fund went south."  Imagine that: the investors were actually holding a winner and yet, they lost money!

Getting real about returns

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