Any time you see an advertisement for a mutual fund, it is the law that they must add a disclaimer that reads: “Past results are not indicative of future performance.” The reason this is there is because it’s true. Isn’t it insulting that fund companies spend millions showing off their historical returns when they know fully well it doesn’t mean anything?

For anyone foolish enough to think otherwise, consider that fund companies spend lots of time and effort lobbying regulators for their own interests, but no time and energy is spent trying to adjust this disclaimer. The reason? 100% of data supports the disclaimer – and they know it.

You would actually be better off picking your investments by throwing darts. While you’re at it, see if your advisor will hold the dartboard up for you.

Tags: historical returns, investments, mutual fund, regulators