Invest Skeptically

In Part 1 we looked at how endpoint bias and survivor bias can be used by marketers to make their funds look better in their sales materials. Today we’ll discuss some additional information that you should look for when evaluating funds. These are examples of information that help to give you a sense [...]

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Here are two great articles from the Zephyr Associates Inc. website on Mutual Fund Analysis and Peer Group Analysis. They discuss the curses of endpoint bias and survivor bias that skews the analysis of mutual funds.
Endpoint bias can be seen in typical mutual fund ads that compare, for example, 1-year, 3-year, and 5-year returns versus [...]

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As part of a new package of changes, regulators are proposing a simple 2-page “Fund Facts” disclosure sheet. The idea is that potential investors would have to receive the sheet (and hopefully read it) before purchasing a mutual fund product. A similar package has been drafted for segregated funds.
Rob Carrick in The [...]

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