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Fund Spy

How to Be Cheap, Contrarian, and Happy

Plus, other tips from our fund analyst group.

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Morningstar analysts receive a lot of e-mails that give us valuable guidance about what funds we should cover and how we should cover them. Our communication with readers also gives us insight into readers' questions and concerns.

Over the years, many of the questions we have received have converged around similar themes. I'll answer some of the most common questions in this article and also shed light on Morningstar's overall philosophy for making money in mutual funds.

1) Why would you give a good recommendation to a fund that's been a poor performer recently, while panning another fund with very strong returns?
This is the most frequently asked question we receive, bar none. And it's easy to see why. After all, if a fund has delivered good performance in the past, isn't it apt to do so in the future? And aren't stinkers likely to stay stinky?

Christine Benz does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.