When researching funds, an important factor to consider is the track record of the manager currently in charge.  Most fund summaries will include the fund’s return since the current manager started.  Looking at this return can be more telling than the fund’s long-term return.

Many funds change portfolio managers over the years.  We usually have to be a bit more cautious if a fund has a great long-term track record, but has recently changed managers.  Conversely, if a fund has had a poor record, but a manager with great long-term performance comes aboard, it may be more attractive. 

No fund manager delivers the best results each year, but there are some who constantly deliver above average results year after year.  There is a lot more peace of mind to be had knowing your money is in the hands of an experienced, successful mutual fund manager than one with a limited track record.