Past performance tells us very little
07 March, 2019
The media would have us believe that past performance is a significant and reliable indicator of future returns. Wrong.
Past performance is next to useless in determining future returns. Here, Morningstar's Global Director of Manager Research, Jeff Ptak, explains why.
As stated in the video: Identifying, in advance, an actively managed fund that will outperform the market over the long term is extremely difficult.
Choosing a low-cost index fund that tracks the whole market will give you a much better chance of a successful investment experience.