The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:MarketWatch Creates Mock Fund Ads Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, June 19, 2013

MarketWatch Creates Mock Fund Ads

News summary by MFWire's editors

MarketWatch's Paul Merriman makes light of mutual fund truisms that mutual fund shops will never advertise.

Among his parody ads are "Our fund is much more risky than you think" and "Sure, we have a greater track record but then was then and this is now. The manager who created our record left for a better-paying job."

MarketWatch explains how mutual funds keep some of this information from investors:

"Our fund family's overall track record isn't as good as it looks, because we can and do manipulate funds in order to improve our statistics."

It has everything to do with survivorship bias:

"When a fund performs poorly, the fund family can close or merge its assets with another fund that has done better. Instantly, the 'dog' funds are gone and the average of open funds is instantly improved." 

Edited by: Casey Quinlan

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2024: Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use