Detail Risk and Return in Mutual Fund Selection : Understanding Risk in Mutual Fund Selection   Oleh:  Clarfeld, Robert A. ; Bernstein, Phyllis Jenis: Article from Bulletin/Magazine Dalam koleksi: Journal of Accountancy vol. 183 no. 1 (1997), page 45-50. Topik: RISK AND RETURN THEORIES; risk and return; mutual fund; selection Ketersediaan Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ85.1 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada     Lihat Detail Induk Isi artikel Mutual fund investors still get only half the story. The focus - in both the financial press and in advertisements - is on investment return, often precisely quantified by historical returns over several time intervals, with any mention of the funds relative risk relegated to imprecise generalities. Investors - and the CPA s who advise them - need objective criteria concisely communicated to enable them to understand the risks that accompany these returns so they can make rational mutual fund selections. Unfortunately, the financial press often treats mutual fund investors as though they are incapable of understanding basic risk statistics and the fundamental relationship between risk and return that should drive all investment decisions. The mutual fund universe often is divided into two distinct camps - winners and losers - based solely on performance. The same publication that praises a fund manager for outperforming a bull market will criticize the manager for exceeding market losses in a downturn, even though this is a logical expectation based on the funds aggressive investment style and high - risk profile. Furthermore, the aggressive manager may be investing toward a very different benchmark, say, the Russell growth index rather than the Standard & Poors 500. (See the sidebar) This type of reporting often comes at an inappropriate point in the investment cycle - promoting high - risk funds at the peak of a bull market, when it is too late for investors to benefit, and defensive funds after the market already has declined. Mutual fund lists featuring "funds to consider for the next millennium" or "the 17 greatest funds in the history of the universe" appear frequently in the media and make interesting reading. But, over time, such lists have not proven to be particularly insightful. Funds with records of steady gains and favorable risk - reward characteristics usually are better choices for long - term investors. This may be apparent following a deep market correction but difficult to fathom during rising markets, a time when many of these same funds are labeled "laggards." Reducing mutual fund selection to simplistic levels presumes an ignorant investing public, which does little to promote successful investing. This article is designed to help CPA s interpret the various statistical measures of risk as they apply to mutual funds so they will be in a better position to advise their clients on this often complex aspect of stock and bond investing. Knowing how to interpret this information correctly will make it easier for CPA s to make responsible and informed investment recommendations to their clients. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Kembali

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