“The Value of Past Performance Data: The Case of Mutual Funds” (Financial Counseling and Planning, Volume 2,
By: CRAIG L. ISRAELSEN AND IVAN F. BEUTLER
CONTACT: CRAIG L. ISRAELSEN (E-MAIL: firstname.lastname@example.org
POSTAL: Department of Consumer and Family Economics University of Missouri, Columbia, MO 65211
PHONE: (314) 882-2173 FAX: (314) 884-4807
An estimate of the potential value of using past performance data in the selection of mutual funds is presented.
Empirical results are based on historical returns and information that is readily available in popular press sources.
The payoff from obtaining and evaluating past performance data prior to selecting and investing in mutual funds was
found to be positive, and in many cases substantial.
KEY WORDS: past performance data, mutual fund selection.