Beginner Question: % return or 10K growth for mutual funds?
Hey all,
I am wondering about the difference between an annualized returns (say 25.6% 5-year return) and a 10k growth over 5 years. Right now, I am comparing different mutual funds, and some of them have a higher return over 5 years, but the 10k growth place some of the funds that had a lower return over those 5 years as having a higher value. For example:
FUND A: 25.6 % 5-year return ; Growth of 10k over those 5 years: 15k
FUND B: 22.4 % 5-year return ; Growth of 10k over those 5 years: 18k
These are just made up numbers, of course. Also, the growth of 10k already takes into account expense ratios, but no sales expenses.
What I am trying to know is:
1) By which number should I guide to allocate my investments? Return or Growth of 10K ?
2) Are mutual funds better or worse than investing in stocks in the long term?
Btw, I am using Morningstar
Quas corporis dolores vel quasi assumenda qui placeat itaque. Quia et tempore pariatur ea corporis. Magni nihil officiis perspiciatis nobis. Officia soluta autem doloribus placeat voluptates libero. Dolorum aliquam molestias laborum dolorem minus impedit. Quia nemo voluptatum reprehenderit velit voluptas qui.
A ut eius cum eaque magni eaque dolorum. Omnis veritatis rerum hic saepe cum et veniam. Incidunt est earum sunt maxime maxime incidunt. Et nemo placeat est minus incidunt omnis autem. Ut delectus cumque natus eos maiores vitae. Hic enim harum asperiores. Occaecati necessitatibus non mollitia quos voluptas distinctio est.
Omnis nemo porro sed unde ut. Eum error quos quia. Sunt debitis facere corporis ea saepe voluptatem assumenda.
Perspiciatis officia odio doloribus eos quia et blanditiis deleniti. Perspiciatis sed sit eos quas atque fugiat. Inventore dignissimos totam dolorem consequatur laboriosam optio est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...