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Many people choose their mutual funds by consulting a table in their favorite finance publication and buying whatever has the best recent record. Bad idea. Sure, that might simplify fund picking, but it can lead to a real mess later on. As anyone who invested in aggressive growth funds in 1999 or 2000 can attest, buying the hot funds of today might produce huge losses tomorrow.
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To find dependable funds, investors need more information than annualized returns. That was the premise CONSUMER REPORTS adopted two years ago when we published our first ranking of mutual funds based on consistency of returns. Our goal was to shift focus ...