Book of Wise Investors

When you invest, you want returns. However, there are many ways to measure performance and since investing in mutual funds is what the majority of us have to do in order to achieve financial freedoms or any other goals, it is important to learn how to measure performance. Most people measure fund performance by just simply looking at its historical returns. The rationale behind it is simple, if a fund is unable to achieve satisfactory returns in the past, what makes us think that it is going to do so in the future.

However, by basing your decisions on which…