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The stakes are high for an investor choosing funds in volatile times.
After all, very few investors were choosing funds according to after-tax performance.
Money Observer has been my primary teacher and I did fairly well in choosing funds until the last boom.
One explanation is the "hand-holding principle"; choosing funds is tricky and clients feel cautious about doing it on their own.
Still, he warned against seeking the highest yield, which he said would inevitably lead to more risk, or choosing funds tilted toward long-term bonds.
"You can spread your investments by choosing funds in different markets, so the UK and globally, and sectors, such as equity income and bonds, and funds managed in different ways".
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So if providers of other people's money choose funds wisely, there is not much for them to complain about.
Keep in mind, though, that Value Line -- like Morningstar -- does not recommend that investors choose funds solely because of their ratings.
The investment implication of these results depends on whether you choose funds on the basis of recent returns.
Investors who choose funds based on bull-market performance might overlook those that periodically take huge cash positions when their managers feel stocks are overvalued.
We've chosen funds that have done decently in up markets but have excelled in down ones.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com