The No.1 predictor of mutual fund performance is "looking at the mutual fund's costs";the lower they are,the better the predicted performance.

Question

Quizplus · Accepted Answer

Numerous studies have shown that the costs associated with mutual funds, such as management fees and expense ratios, are the best predictor of future performance. Funds with lower costs tend to outperform funds with higher costs over the long term. This is because high costs erode returns and make it more challenging for the fund manager to exceed the benchmark index.

The No1 Predictor of Mutual Fund Performance Is "Looking at the the Mutual