How to Measure Mutual Fund Performance

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How to Measure Mutual Fund Performance

  1. 1. How to Measure Mutual Fund Performance Some Images are copyright of  Hemera Technologies, Inc.
  2. 2. Agenda <ul><li>Long-Term Investing (Buy and Hold) </li></ul><ul><li>Some Risk Basics </li></ul><ul><li>The Importance of Asset Allocation </li></ul><ul><li>Reading a Mutual Fund Prospectus </li></ul><ul><li>Mutual Fund Fees and Expenses </li></ul><ul><li>Analyzing Investment Results </li></ul>
  3. 3. Agenda <ul><li>Long-Term Investing (Buy and Hold) </li></ul><ul><li>Some Risk Basics </li></ul><ul><li>The Importance of Asset Allocation </li></ul><ul><li>Reading a Mutual Fund Prospectus </li></ul><ul><li>Mutual Fund Fees and Expenses </li></ul><ul><li>Analyzing Investment Results </li></ul>
  4. 4. Long-Term Investing (Buy and Hold) <ul><li>Volatility </li></ul><ul><li>Liquidity and Transaction Costs </li></ul><ul><li>Dividend Income </li></ul><ul><li>Market Timing Is Counterproductive </li></ul>
  5. 5. Long-Term Investing (Buy and Hold) <ul><li>Volatility </li></ul><ul><li>Liquidity and Transaction Costs </li></ul><ul><li>Dividend Income </li></ul><ul><li>Market Timing Is Counterproductive </li></ul>
  6. 6. Long-Term Investing (Buy and Hold) <ul><li>Volatility </li></ul><ul><li>Liquidity and Transaction Costs </li></ul><ul><li>Dividend Income </li></ul><ul><li>Market Timing Is Counterproductive </li></ul>
  7. 7. Long-Term Investing (Buy and Hold) <ul><li>Volatility </li></ul><ul><li>Liquidity and Transaction Costs </li></ul><ul><li>Dividend Income </li></ul><ul><li>Market Timing Is Counterproductive </li></ul>
  8. 8. Long-Term Investing (Buy and Hold) <ul><li>Volatility </li></ul><ul><li>Liquidity and Transaction Costs </li></ul><ul><li>Dividend Income </li></ul><ul><li>Market Timing Is Counterproductive </li></ul>
  9. 9. Market Timing Is Counterproductive <ul><li>RMG Capital Advisors Study </li></ul><ul><li>Sanford C. Bernstein Studies </li></ul>Studies have shown numerous ways market timing can be counterproductive:
  10. 10. Market Timing is Counterproductive <ul><li>When is the market going to decline? </li></ul><ul><li>When do you get back in the market? </li></ul><ul><li>What will the impact of taxes and transaction costs be? </li></ul>Attempting to time the market is futile:
  11. 11. Agenda <ul><li>Long-Term Investing (Buy and Hold) </li></ul><ul><li>Some Risk Basics </li></ul><ul><li>The Importance of Asset Allocation </li></ul><ul><li>Reading a Mutual Fund Prospectus </li></ul><ul><li>Mutual Fund Fees and Expenses </li></ul><ul><li>Analyzing Investment Results </li></ul>
  12. 12. Some Risk Basics <ul><li>Standard deviation as a measure of risk </li></ul><ul><li>Definition of risk </li></ul><ul><li>Risk of loss </li></ul><ul><li>Risk of not achieving goals </li></ul><ul><li>Risk/reward theory </li></ul><ul><li>Time horizon sensitivity </li></ul><ul><li>Sources of investment risk </li></ul>
  13. 13. Some Risk Basics <ul><li>Standard deviation as a measure of risk </li></ul><ul><li>Definition of risk </li></ul><ul><li>Risk of loss </li></ul><ul><li>Risk of not achieving goals </li></ul><ul><li>Risk/reward theory </li></ul><ul><li>Time horizon sensitivity </li></ul><ul><li>Sources of investment risk </li></ul>
  14. 14. Some Risk Basics <ul><li>Standard deviation as a measure of risk </li></ul><ul><li>Definition of risk </li></ul><ul><li>Risk of loss </li></ul><ul><li>Risk of not achieving goals </li></ul><ul><li>Risk/reward theory </li></ul><ul><li>Time horizon sensitivity </li></ul><ul><li>Sources of investment risk </li></ul>
  15. 15. Some Risk Basics <ul><li>Standard deviation as a measure of risk </li></ul><ul><li>Definition of risk </li></ul><ul><li>Risk of loss </li></ul><ul><li>Risk of not achieving goals </li></ul><ul><li>Risk/reward theory </li></ul><ul><li>Time horizon sensitivity </li></ul><ul><li>Sources of investment risk </li></ul>
  16. 16. Some Risk Basics <ul><li>Standard deviation as a measure of risk </li></ul><ul><li>Definition of risk </li></ul><ul><li>Risk of loss </li></ul><ul><li>Risk of not achieving goals </li></ul><ul><li>Risk/reward theory </li></ul><ul><li>Time horizon sensitivity </li></ul><ul><li>Sources of investment risk </li></ul>
  17. 17. Some Risk Basics <ul><li>Standard deviation as a measure of risk </li></ul><ul><li>Definition of risk </li></ul><ul><li>Risk of loss </li></ul><ul><li>Risk of not achieving goals </li></ul><ul><li>Risk/reward theory </li></ul><ul><li>Time horizon sensitivity </li></ul><ul><li>Sources of investment risk </li></ul>
  18. 18. Some Risk Basics <ul><li>Standard deviation as a measure of risk </li></ul><ul><li>Definition of risk </li></ul><ul><li>Risk of loss </li></ul><ul><li>Risk of not achieving goals </li></ul><ul><li>Risk/reward theory </li></ul><ul><li>Time horizon sensitivity </li></ul><ul><ul><li>Short-term horizon </li></ul></ul><ul><ul><li>Long-term horizon </li></ul></ul><ul><li>Sources of investment risk </li></ul>
  19. 19. Some Risk Basics <ul><li>Standard deviation as a measure of risk </li></ul><ul><li>Definition of risk </li></ul><ul><li>Risk of loss </li></ul><ul><li>Risk of not achieving goals </li></ul><ul><li>Risk/reward theory </li></ul><ul><li>Time horizon sensitivity </li></ul><ul><ul><li>Short-term horizon </li></ul></ul><ul><ul><li>Long-term horizon </li></ul></ul><ul><li>Sources of investment risk </li></ul>
  20. 20. Some Risk Basics <ul><li>Standard deviation as a measure of risk </li></ul><ul><li>Definition of risk </li></ul><ul><li>Risk of loss </li></ul><ul><li>Risk of not achieving goals </li></ul><ul><li>Risk/reward theory </li></ul><ul><li>Time horizon sensitivity </li></ul><ul><ul><li>Short-term horizon </li></ul></ul><ul><ul><li>Long-term horizon </li></ul></ul><ul><li>Sources of investment risk </li></ul>
  21. 21. Some Risk Basics <ul><li>Standard deviation as a measure of risk </li></ul><ul><li>Definition of risk </li></ul><ul><li>Risk of loss </li></ul><ul><li>Risk of not achieving goals </li></ul><ul><li>Risk/reward theory </li></ul><ul><li>Time horizon sensitivity </li></ul><ul><li>Sources of investment risk </li></ul><ul><ul><li>Systematic risk </li></ul></ul><ul><ul><li>Nonsystematic risk </li></ul></ul>
  22. 22. Some Risk Basics <ul><li>Standard deviation as a measure of risk </li></ul><ul><li>Definition of risk </li></ul><ul><li>Risk of loss </li></ul><ul><li>Risk of not achieving goals </li></ul><ul><li>Risk/reward theory </li></ul><ul><li>Time horizon sensitivity </li></ul><ul><li>Sources of investment risk </li></ul><ul><ul><li>Systematic risk </li></ul></ul><ul><ul><li>Nonsystematic risk </li></ul></ul>
  23. 23. Some Risk Basics <ul><li>Standard deviation as a measure of risk </li></ul><ul><li>Definition of risk </li></ul><ul><li>Risk of loss </li></ul><ul><li>Risk of not achieving goals </li></ul><ul><li>Risk/reward theory </li></ul><ul><li>Time horizon sensitivity </li></ul><ul><li>Sources of investment risk </li></ul><ul><ul><li>Systematic risk </li></ul></ul><ul><ul><li>Nonsystematic risk </li></ul></ul>
  24. 24. Agenda <ul><li>Long-Term Investing (Buy and Hold) </li></ul><ul><li>Some Risk Basics </li></ul><ul><li>The Importance of Asset Allocation </li></ul><ul><li>Reading a Mutual Fund Prospectus </li></ul><ul><li>Mutual Fund Fees and Expenses </li></ul><ul><li>Analyzing Investment Results </li></ul>
  25. 25. The Importance of Asset Allocation <ul><li>Three primary factors impacting investment performance: </li></ul><ul><li>Market timing </li></ul><ul><li>Investment selection </li></ul><ul><li>Asset allocation </li></ul>Cash Stock Bonds T-Bills
  26. 26. The Importance of Asset Allocation <ul><li>Three primary factors impacting investment performance: </li></ul><ul><li>Market timing </li></ul><ul><li>Investment selection </li></ul><ul><li>Asset allocation </li></ul>Cash Stock Bonds T-Bills
  27. 27. The Importance of Asset Allocation <ul><li>Three primary factors impacting investment performance: </li></ul><ul><li>Market timing </li></ul><ul><li>Asset allocation </li></ul><ul><li>Investment selection </li></ul>Cash Stock Bonds T-Bills
  28. 28. The Importance of Asset Allocation <ul><li>Three primary factors impacting investment performance: </li></ul><ul><li>Investment selection </li></ul><ul><li>Market timing </li></ul><ul><li>Asset allocation </li></ul>Cash Stock Bonds T-Bills
  29. 29. <ul><li>Studies have shown that over 90% of the performance of a given portfolio is attributable to asset allocation. </li></ul><ul><li>Less than 10% of performance is due to the choice of individual securities, market timing, transaction costs, and other miscellaneous items combined. </li></ul>The Importance of Asset Allocation
  30. 30. Agenda <ul><li>Long-Term Investing (Buy and Hold) </li></ul><ul><li>Some Risk Basics </li></ul><ul><li>The Importance of Asset Allocation </li></ul><ul><li>Reading a Mutual Fund Prospectus </li></ul><ul><ul><li>Contents </li></ul></ul><ul><ul><li>Profile prospectus </li></ul></ul><ul><li>Mutual Fund Fees and Expenses </li></ul><ul><li>Analyzing Investment Results </li></ul>
  31. 31. Contents <ul><li>Fee table </li></ul><ul><li>Investment objectives </li></ul><ul><li>Financial highlights table </li></ul><ul><li>Investment advisor and advisor compensation </li></ul><ul><li>How to purchase and redeem shares </li></ul><ul><li>Dividends and distributions </li></ul><ul><li>Miscellaneous services </li></ul>
  32. 32. Contents <ul><li>Fee table </li></ul><ul><ul><li>Sales Commissions </li></ul></ul><ul><ul><li>Operating Expenses </li></ul></ul><ul><li>Investment objectives </li></ul><ul><li>Financial highlights table </li></ul><ul><li>Investment advisor and advisor compensation </li></ul><ul><li>How to purchase and redeem shares </li></ul><ul><li>Dividends and distributions </li></ul><ul><li>Miscellaneous services </li></ul>
  33. 33. Contents <ul><li>Fee table </li></ul><ul><li>Investment objectives </li></ul><ul><ul><li>Describes securities used to meet fund objectives </li></ul></ul><ul><li>Financial highlights table </li></ul><ul><li>Investment advisor and advisor compensation </li></ul><ul><li>How to purchase and redeem shares </li></ul><ul><li>Dividends and distributions </li></ul><ul><li>Miscellaneous services </li></ul>
  34. 34. Contents <ul><li>Fee table </li></ul><ul><li>Investment objectives </li></ul><ul><li>Financial highlights table </li></ul><ul><ul><li>History of Annual Returns </li></ul></ul><ul><li>Investment advisor and advisor compensation </li></ul><ul><li>How to purchase and redeem shares </li></ul><ul><li>Dividends and distributions </li></ul><ul><li>Miscellaneous services </li></ul>
  35. 35. Contents <ul><li>Fee table </li></ul><ul><li>Investment objectives </li></ul><ul><li>Financial highlights table </li></ul><ul><li>Investment advisor and advisor compensation </li></ul><ul><li>How to purchase and redeem shares </li></ul><ul><li>Dividends and distributions </li></ul><ul><li>Miscellaneous services </li></ul>
  36. 36. Contents <ul><li>Fee table </li></ul><ul><li>Investment objectives </li></ul><ul><li>Financial highlights table </li></ul><ul><li>Investment advisor and advisor compensation </li></ul><ul><li>How to purchase and redeem shares </li></ul><ul><ul><li>Minimum Investment Requirements </li></ul></ul><ul><li>Dividends and distributions </li></ul><ul><li>Miscellaneous services </li></ul>
  37. 37. Contents <ul><li>Fee table </li></ul><ul><li>Investment objectives </li></ul><ul><li>Financial highlights table </li></ul><ul><li>Investment advisor and advisor compensation </li></ul><ul><li>How to purchase and redeem shares </li></ul><ul><li>Dividends and distributions </li></ul><ul><ul><li>Timing of Dividend Distributions </li></ul></ul><ul><li>Miscellaneous services </li></ul>
  38. 38. Contents <ul><li>Fee table </li></ul><ul><li>Investment objectives </li></ul><ul><li>Financial highlights table </li></ul><ul><li>Investment advisor and advisor compensation </li></ul><ul><li>How to purchase and redeem shares </li></ul><ul><li>Dividends and distributions </li></ul><ul><li>Miscellaneous services </li></ul>
  39. 39. Agenda <ul><li>Long-term Investing (Buy and Hold) </li></ul><ul><li>Some Risk Basics </li></ul><ul><li>The Importance of Asset Allocation </li></ul><ul><li>Reading a Mutual Fund Prospectus </li></ul><ul><ul><li>Contents </li></ul></ul><ul><ul><li>Profile prospectus </li></ul></ul><ul><li>Mutual Fund Fees and Expenses </li></ul><ul><li>Analyzing Investment Results </li></ul>
  40. 40. Agenda <ul><li>Long-Term Investing (Buy and Hold) </li></ul><ul><li>Some Risk Basics </li></ul><ul><li>The Importance of Asset Allocation </li></ul><ul><li>Reading a Mutual Fund Prospectus </li></ul><ul><li>Mutual Fund Fees and Expenses </li></ul><ul><li>Analyzing Investment Results </li></ul>
  41. 41. Mutual Fund Fees and Expenses <ul><li>Fee disclosure </li></ul><ul><li>Two fee categories </li></ul><ul><li>Fund expense ratio </li></ul>
  42. 42. Mutual Fund Fees and Expenses <ul><li>Fee disclosure </li></ul><ul><ul><li>Direct Impact on Earnings Potential </li></ul></ul><ul><li>Two fee categories </li></ul><ul><li>Fund expense ratio </li></ul>
  43. 43. Mutual Fund Fees and Expenses <ul><li>Fee disclosure </li></ul><ul><li>Two fee categories </li></ul><ul><ul><li>Sales charges or loads </li></ul></ul><ul><ul><li>Annual operating expenses </li></ul></ul><ul><li>Fund expense ratio </li></ul>
  44. 44. Sales Charges or Loads <ul><li>Front-end sales loads—Class A Shares </li></ul><ul><li>Back-end or deferred sales loads — Class B and C Shares </li></ul>
  45. 45. Sales Charges or Loads <ul><li>Front-end sales loads — Class A Shares </li></ul><ul><li>Back-end or deferred sales loads — Class B and C Shares </li></ul>
  46. 46. Sales Charges or Loads <ul><li>Front-end sales loads — Class A Shares </li></ul><ul><li>Back-end or deferred sales loads — Class B and C Shares </li></ul>
  47. 47. Annual Operating Expenses <ul><li>Management fees </li></ul><ul><li>12b-1 fees </li></ul><ul><li>Other fees </li></ul>
  48. 48. Annual Operating Expenses <ul><li>Management fees </li></ul><ul><li>12b-1 fees </li></ul><ul><li>Other fees </li></ul>
  49. 49. Annual Operating Expenses <ul><li>Management fees </li></ul><ul><li>12b-1 fees </li></ul><ul><ul><li>Marketing and Distribution Costs </li></ul></ul><ul><ul><li>“ Trailing” Commission </li></ul></ul><ul><li>Other fees </li></ul>
  50. 50. Annual Operating Expenses <ul><li>Management fees </li></ul><ul><li>12b-1 fees </li></ul><ul><li>Other fees </li></ul><ul><ul><li>Administrative Costs of the Mutual Fund </li></ul></ul>
  51. 51. Mutual Fund Fees and Expenses <ul><li>Fee disclosure </li></ul><ul><li>Two fee categories </li></ul><ul><li>Fund expense ratio </li></ul><ul><ul><li>Annual Operating Expenses </li></ul></ul><ul><ul><li>Expressed as a Percentage of the Fund’s Assets </li></ul></ul>
  52. 52. Agenda <ul><li>Long-Term Investing (Buy and Hold) </li></ul><ul><li>Some Risk Basics </li></ul><ul><li>The Importance of Asset Allocation </li></ul><ul><li>Reading a Mutual Fund Prospectus </li></ul><ul><li>Mutual Fund Fees and Expenses </li></ul><ul><li>Analyzing Investment Results </li></ul>
  53. 53. Analyzing Investment Results <ul><li>Performance </li></ul><ul><li>Expenses </li></ul><ul><li>Modern Portfolio Theory analysis </li></ul><ul><li>Ratings </li></ul><ul><li>Manager longevity </li></ul><ul><li>Tax efficiency </li></ul>
  54. 54. Analyzing Investment Results <ul><li>Performance </li></ul><ul><ul><li>Past Results Are No Guarantee of Future Results </li></ul></ul><ul><li>Expenses </li></ul><ul><li>Modern Portfolio Theory analysis </li></ul><ul><li>Ratings </li></ul><ul><li>Manager longevity </li></ul><ul><li>Tax efficiency </li></ul>
  55. 55. Performance <ul><li>Average annual return </li></ul><ul><li>Consider time period of performance </li></ul><ul><li>Total return </li></ul><ul><li>Use average annual returns </li></ul><ul><li>Use a market index for comparison </li></ul><ul><li>Use peer performance for comparison </li></ul>
  56. 56. Performance <ul><li>Average annual return </li></ul><ul><ul><li>Average Return Over Time Specified </li></ul></ul><ul><li>Consider time period of performance </li></ul><ul><li>Total return </li></ul><ul><li>Use average annual returns </li></ul><ul><li>Use a market index for comparison </li></ul><ul><li>Use peer performance for comparison </li></ul>
  57. 57. Performance <ul><li>Average annual return </li></ul><ul><li>Consider time period of performance </li></ul><ul><ul><li>Bulls or Bears During Period Listed? </li></ul></ul><ul><li>Total return </li></ul><ul><li>Use average annual returns </li></ul><ul><li>Use a market index for comparison </li></ul><ul><li>Use peer performance for comparison </li></ul>
  58. 58. Performance <ul><li>Average annual return </li></ul><ul><li>Consider time period of performance </li></ul><ul><li>Total return </li></ul><ul><ul><li>Total Return Percentage Over Time Specified </li></ul></ul><ul><li>Use average annual returns </li></ul><ul><li>Use a market index for comparison </li></ul><ul><li>Use peer performance for comparison </li></ul>
  59. 59. Performance <ul><li>Average annual return </li></ul><ul><li>Consider time period of performance </li></ul><ul><li>Total return </li></ul><ul><li>Use average annual returns </li></ul><ul><li>Use a market index for comparison </li></ul><ul><li>Use peer performance for comparison </li></ul>
  60. 60. Performance <ul><li>Average annual return </li></ul><ul><li>Consider time period of performance </li></ul><ul><li>Total return </li></ul><ul><li>Use average annual returns </li></ul><ul><li>Use a market index for comparison </li></ul><ul><ul><li>Use Relevant Index for Performance Benchmark </li></ul></ul><ul><li>Use peer performance for comparison </li></ul>
  61. 61. Performance <ul><li>Average annual return </li></ul><ul><li>Consider time period of performance </li></ul><ul><li>Total return </li></ul><ul><li>Use average annual returns </li></ul><ul><li>Use a market index for comparison </li></ul><ul><li>Use peer performance for comparison </li></ul>
  62. 62. Analyzing Investment Results <ul><li>Performance </li></ul><ul><li>Expenses </li></ul><ul><li>Modern Portfolio Theory analysis </li></ul><ul><li>Ratings </li></ul><ul><li>Manager longevity </li></ul><ul><li>Tax efficiency </li></ul>
  63. 63. Expenses <ul><li>Expense ratio </li></ul><ul><ul><li>Money market and bond funds </li></ul></ul><ul><ul><li>Actively managed stock funds </li></ul></ul>
  64. 64. Expenses <ul><li>Expense ratio </li></ul><ul><ul><li>Money market and bond funds </li></ul></ul><ul><ul><li>Actively managed stock funds </li></ul></ul>
  65. 65. Expenses <ul><li>Expense ratio </li></ul><ul><ul><li>Money market and bond funds </li></ul></ul><ul><ul><li>Actively managed stock funds </li></ul></ul>
  66. 66. Analyzing Investment Results <ul><li>Performance </li></ul><ul><li>Expenses </li></ul><ul><li>Modern Portfolio Theory analysis </li></ul><ul><li>Ratings </li></ul><ul><li>Manager longevity </li></ul><ul><li>Tax efficiency </li></ul>
  67. 67. Modern Portfolio Theory Analysis <ul><li>Standard deviation </li></ul><ul><li>Alpha </li></ul><ul><li>Beta </li></ul><ul><li>R-squared </li></ul><ul><li>Sharpe Ratio </li></ul><ul><li>Treynor Ratio </li></ul>
  68. 68. <ul><li>Standard deviation </li></ul><ul><ul><li>Deviation Above and Below Expected Return </li></ul></ul><ul><li>Alpha </li></ul><ul><li>Beta </li></ul><ul><li>R-squared </li></ul><ul><li>Sharpe Ratio </li></ul><ul><li>Treynor Ratio </li></ul>Modern Portfolio Theory Analysis
  69. 69. <ul><li>Standard deviation </li></ul><ul><li>Alpha </li></ul><ul><ul><li>Better or Worse than Expected? </li></ul></ul><ul><li>Beta </li></ul><ul><li>R-squared </li></ul><ul><li>Sharpe Ratio </li></ul><ul><li>Treynor Ratio </li></ul>Modern Portfolio Theory Analysis
  70. 70. <ul><li>Standard deviation </li></ul><ul><li>Alpha </li></ul><ul><li>Beta </li></ul><ul><ul><li>How Volatile Compared to the Market? </li></ul></ul><ul><li>R-squared </li></ul><ul><li>Sharpe Ratio </li></ul><ul><li>Treynor Ratio </li></ul>Modern Portfolio Theory Analysis
  71. 71. <ul><li>Standard deviation </li></ul><ul><li>Alpha </li></ul><ul><li>Beta </li></ul><ul><li>R-squared </li></ul><ul><ul><li>How Well Diversified are the Fund’s Assets? </li></ul></ul><ul><li>Sharpe Ratio </li></ul><ul><li>Treynor Ratio </li></ul>Modern Portfolio Theory Analysis
  72. 72. <ul><li>Standard deviation </li></ul><ul><li>Alpha </li></ul><ul><li>Beta </li></ul><ul><li>R-squared </li></ul><ul><li>Sharpe Ratio </li></ul><ul><ul><li>Risk-Adjusted Performance Using Standard Deviation </li></ul></ul><ul><li>Treynor Ratio </li></ul>Modern Portfolio Theory Analysis
  73. 73. <ul><li>Standard deviation </li></ul><ul><li>Alpha </li></ul><ul><li>Beta </li></ul><ul><li>R-squared </li></ul><ul><li>Sharpe Ratio </li></ul><ul><li>Treynor Ratio </li></ul><ul><ul><li>Risk-Adjusted Performance Using Beta </li></ul></ul>Modern Portfolio Theory Analysis
  74. 74. Analyzing Investment Results <ul><li>Performance </li></ul><ul><li>Expenses </li></ul><ul><li>MPT analysis </li></ul><ul><li>Ratings </li></ul><ul><li>Manager longevity </li></ul><ul><li>Tax efficiency </li></ul>
  75. 75. Ratings <ul><li>Caution: Ratings Are No Guarantee for Superior Future Performance! </li></ul>
  76. 76. Analyzing Investment Results <ul><li>Performance </li></ul><ul><li>Expenses </li></ul><ul><li>MPT analysis </li></ul><ul><li>Ratings </li></ul><ul><li>Manager longevity </li></ul><ul><ul><li>Watch Out for New or Departing Fund Managers </li></ul></ul><ul><li>Tax efficiency </li></ul>
  77. 77. Analyzing Investment Results <ul><li>Performance </li></ul><ul><li>Expenses </li></ul><ul><li>MPT analysis </li></ul><ul><li>Ratings </li></ul><ul><li>Manager longevity </li></ul><ul><li>Tax efficiency </li></ul>
  78. 78. Tax Efficiency <ul><li>Portfolio turnover rate </li></ul><ul><ul><li>How Often a Fund Sells Its Underlying Assets </li></ul></ul><ul><ul><li>High Turnover Is Less Tax Efficient </li></ul></ul>
  79. 79. Questions? Thank You

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