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Debunking 4 Common Myths Advisers Have About Mutual Funds
Source: Morningstar data as of 9/30/15; calculations by Charles Schwab Investment Management, Inc.
"For each month, beginning in February 2003, we tracked the funds that received each of the five possible star ratings and then compared the performance of those funds to the median fund in the corresponding Morningstar category over the next three years. The chart shows you the percentage of funds of each rating that did better than that median category peer over the next three years."
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CLIENTS need to understand the nuances, too.
Source: Morningstar data as of 9/30/15; calculations by Charles Schwab Investment Management, Inc.
"For each month, beginning in February 2003, we tracked the funds that received each of the five possible star ratings and then compared the performance of those funds to the median fund in the corresponding Morningstar category over the next three years. The chart shows you the percentage of funds of each rating that did better than that median category peer over the next three years."
Ha--- love it!!