When selecting mutual funds, whether for an individual or a company’s 401(k) plan, it’s best to strictly adhere to acomprehensive list of criteria. While no one can (or should) guarantee performance, a diversified portfolio of “best in class” high quality funds that are regularly monitored for compliance to that criteria should serve all parties well.
Here are the criteria that should be measured:
The days of choosing a fund by the number of stars, diamonds or smiley faces are long gone. These criteria should be found in your Investment Policy Statement (IPS). Check yours!”