MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Highest Annualized Rate of Return

dryflower
in Fund Discussions
What is the highest annualized rate of return of which you are aware for a mutual fund over an extended time period, say 15, 20, or 30 years? I know that before the weaker performance this century, Templeton Growth Fund (TEPLX) had compounded at something north of 13% annualized for about 50 years. As of late 2016, the fund company says its inception to date return was 11.86%.

What do y'all think is the highest annualized return one could hope for from a diversified equity mutual fund over the coming couple of decades?

Comments

  • TedTed
    @dryflower: Here are some Large Company Stock Fund returns over 1,3,5,10,20 years. Returns as of 2/28/17.
    Regards,
    Ted
    http://www.kiplinger.com/tool/investing/T041-S001-top-performing-mutual-funds/index.php
  • JunksterJunkster
    edited March 2017
    Without checking I would think it would be some sector fund like healthcare or biotech.
  • dryflower
    Thanks, Ted. 10 years is too short for what I'm asking about. Looks like the best they have for a 20 year period is Vanguard Capital Opportunity at 12.9%.

    @Junkster, what I was intending by using the word diversified was to exclude those funds.
  • msf
    edited March 2017
    Those are nice Kiplinger tables (data from M*). Be careful with the top figures though, because funds often have multiple share classes.

    For example, it says the top 3 year performer was DSENX, but DSEEX performed about 1/4% better. That's as one would expect since the I class shares have no 12b-1 fee. (I checked to make sure that DSEEX was also around for at least three years as of 2/28/17.)

    Online, M* only goes back 15 years, but with that in mind, the top 15 year performers are (as of 3/10/17):

    OSMAX 14.71% (foreign small/mid)
    PHSZX 14.60% (health)
    SHSSX 14.55% (health)
    PRMTX 14.53% (communications) - converted from CEF New Age Media 7/28/97 (> 15 years ago)
    ESMAX 14.44% (Europe)
    CGMRX 14.27% (real estate)
    BRUFX 14.21 (allocation 50%-70%)
    INPIX 14.14% (trading - leveraged equity)

    To address the question about the next 20 years, the most obvious answer is: your guess is as good as mine. FWIW, my guess is a bit south of 8%. Look at Ted's 20 year top LC performers. Domestically, around 11-12%, internationally 7%-8%.

    Rate of population growth is declining quickly (might result in slower demand/profit growth). Unlike the first industrial revolution that increased both production capability and demand (hiring workers), the new revolution in machines (both service and manufacturing) seem to improve primarily just the production side of the equation.

    Just a couple of random thoughts. Not sure how it will really affect long term profits (which is supposed to be what drives capital gains).
  • TedTed
    @MFO: How about VGHCX, inception date 5/23/84, annualized return 16.63%.
    Regards,
    Ted
  • MarkMark
    You might look into the performance history of Lexington Corporate Trust and see where that takes you. All I've been able to find is it's history over the past 10 years.
  • TedTed
    @Mark: FYI: LEXCX has had an annual return of 10.59% since inception, 11/18/35.
    Regards,
    Ted
    http://money.cnn.com/quote/mutualfund/mutualfund.html?symb=LEXCX
Sign In or Register to comment.