Funds persistence states that when using past fund rankings it is never useful in predicting future ranking.

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Research has also examined whether fund performance is correlated over time;that is,whether past performance is a predictor of future performance.The well-known case of a huge US fund called Magellan,which outperformed the market in 11 of 13 years during the late 1970s and 1980s,is anecdotal evidence of performance persistence.In essence,the research has examined whether winners repeat over time.

Funds Persistence States That When Using Past Fund Rankings It