Introduction

Past performance tells us very littleWH Video Blog

When choosing a fund to invest in, most people tend to focus on how a fund has performed in the past. The fact is that a fund’s past performance tells us very little about its likely future performance. Indeed funds with a good short-term track record — in other words, those you’re likely to read about in the media — are often just the funds to avoid. Jeffrey Ptak is Global Director of Manager Research at Morningstar.