An investor should be cautious when selecting a fund based solely on the manager's past performance,since past performance may not be repeated in the future.

Question

Quizplus · Accepted Answer

Past performance is not a guarantee of future results in mutual fund investing. Market conditions change, and a manager's investment approach may no longer be effective. It is important to consider other factors such as the fund's objective, fees, risk level, and portfolio holdings when selecting a fund.

An Investor Should Be Cautious When Selecting a Fund Based