Re: Evaluating Managed Funds
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What kind of yearly return % would either of these allocations yield? Obviously nothing is guaranteed, but what would be an average yearly yield? I'm currently investing in Fidelity Contrafund just because with an average return of 12%, it seems like the best option out there.
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I doubt Contrafund will continue to earn 12% annually going forward. Looking at past returns and extrapolating to the future can be very dangerous unless you have lots of other reasons to think that performance will continue.
And, FWIW, FAIRX has returned over 14% for the past five years.
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