These Funds Are Oldies but Goodies
Even though they're 65-plus, these funds still make the short list for Morningstar's analysts.
In short order, Hollywood will begin cranking out hundreds--literally--of new TV shows. But don't get too attached. Fewer than half are likely to make it into their second season, if previous years' survival rates are any guide. For every successful, long-running series like Friends and The Office, there are an equal number of short-lived flops like Cop Rock and The Hasselhoffs.
The mutual fund industry has a similar track record of launching products that fail to take off. Morningstar's director of manager research, Russ Kinnel, reports that a little less than half of the funds that were around 10 years ago were merged away or liquidated over the ensuing decade. Moreover, an additional 6,000-plus funds that were created within the past decade have been shuttered. Among the funds that have gone extinct, weak performance, small asset bases, or both are recurrent themes. That's why Russ often talks about "success ratios": Outperforming is important, but so is survival. If a fund has good performance but doesn't gain assets and ends up being merged into something else, it hasn't been successful for its shareholders.
Christine Benz does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.