Smart Strategies to Pick Mutual Funds

Using past performance alone often leads to a weak portfolio. Here are better ways to choose winners.

This article appears in Mutual Funds 2010. Buy this special issue.

Selecting a mutual fund can be daunting. You have thousands of funds from which to choose, and many more are born every month. Most fund sponsors aren’t shy about hawking their wares with tempting advertisements that tout great one- or two-year results. Don’t fall for those statistics. Funds with hot short-term records rarely repeat their stellar performance.

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Contributing Writer, Kiplinger's Personal Finance

Andrew Tanzer is an editorial consultant and investment writer. After working as a journalist for 25 years at magazines that included Forbes and Kiplinger’s Personal Finance, he served as a senior research analyst and investment writer at a leading New York-based financial advisor. Andrew currently writes for several large hedge and mutual funds, private wealth advisors, and a major bank. He earned a BA in East Asian Studies from Wesleyan University, an MS in Journalism from the Columbia Graduate School of Journalism, and holds both CFA and CFP® designations.