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<h2 class = 'uawtitle'>Making Sense Of Your Mutual Fund Returns</h2><div style='font-style:italic;' class='uawbyline'>by David C Lewis, RFA</div><div class='uawarticle'><br />Getting good <a href="http://www.twintierfinancial.com/the_uncommon_cents/2008/03/the-trouble-wit.html"><strong>returns on your mutual fund</strong></a> might seem like a joke these days. Most mutual funds have terrible performance, and there are a few reasons why. Government regulations have a lot to do with it, and the industry has gotten lazy and inefficient. As a result, investors have suffered with returns that barely match inflation.<br />
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While you may find a few ways to boost your fund's returns, keep in mind that these products will almost certainly not be the end all, be all that you're told they are.<br />
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You can boost the returns on your mutual funds by not paying attention to historical returns that are posted by the fund company. These are, many times, inflated. By using simple averages instead of compound averages and effective yields, the fund can show you returns that are higher than the actual returns posted by the fund.<br />
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Unless you have a scientific calculator, you're almost certainly not going to get too far. <br />
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Another way to make your investments perform better for you may be just to get out of the fund. I know that's not really boosting the return of the fund, but other investments can offer better advantages. By limiting yourself to just mutual funds, you run the risk of limiting yourself to low returns.<br />
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One final way of getting more out of your fund is to choose funds that invest in small cap companies. You could also do well by just investing in smaller funds. A smaller mutual fund would probably be the essential point here. Think about how easy it would be for a mom and pop shop to double in size as versus a giant corporation like Walmart.</div><div class='uawresource'><div style='font-style:italic;' class='uawabout'><br />
About the Author:<br />
</div><div class='uawlinks'>Author: There is only so much information that can be covered in one article. If you want more information about any aspect of <a href="http://www.twintierfinancial.com">personal finance</a>, please visit David's website. </div><br />
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