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I recently wrote about comparing the performance of mutual funds hedge funds or privately managed accounts to the benchmark that most represents your fund or account holdings. With mutual funds you can easily make this comparison by using Yahoo Finance with the following steps:
- Go to Yahoo Finance and type in the symbol for the mutual fund. This usually consists of 5 letters and may be found on your statement or simply by a Google search.
- Click on a time frame under the small chart on the right. I use “max’ for the maximum time frame. A chart opens showing the fund performance over the time period selected.
- Click on Compare and select the index that most closely represents your fund. The index then also appears on the chart allowing you to see whether your fund or the index has performed best over the selected time frame. Recall from previous blogs that actively managed mutual funds have higher fees and taxable transactions in general than indexes so the fund needs to beat the index by more than a small amount to be equal after taxes and fees.
The link below takes you to the chart that I created comparing the Longleaf Small Cap mutual fund to the NASDAQ index.
Happy Holidays!