Asset Allocation & Risk

Shouldn't I just pick funds with high recent returns?

Some analyses suggest that 'return-chasing' behavior, in which money flows into funds with high past returns, can actually lower investment performance.

This is because stock market returns are almost impossible to predict in the short term and tend to revert to their long-term averages. Remember that past performance does not guarantee future returns.

Last updated

This answer is general financial information as of 2026.10.14, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.