Module 6 ยท Choosing Funds

The Past Returns Trap

The most seductive, most misleading number.

Lesson 4 of 5 ยท 7 min ยท 20 XP

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The number that pulls hardest

Of everything on a factsheet, one number pulls a beginner more than any other: the recent return. A big, bold percentage from last year is hard to look away from. It seems to promise that this is what you will get next. That promise is the single most expensive trap in fund selection.