New Morningstar research shows it pays to choose mutual fund portfolio managers who invest in their own funds. For the five-year period ended Dec. 31, funds in which managers invested more than $1 million had the highest success rate. That rate is defined as the percentage of funds in the top half of their category during the period. Funds in which managers invested nothing had the least success. Bond funds defied the trend. One possible reason is the small sample of funds in the top two investment ranges.
Index funds and funds of funds were excluded. Source: Morningstar Inc.
Compiled and designed by Timothy Pollard and Gregg A. Runburg