How Selective Advertising by Mutual Funds Misleads Investors
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Office of Communications and Public Relations
December 10, 2010
Mutual fund companies attract investors with performance advertisements, which highlight a fund’s past returns. The funds featured in performance advertisements are not randomly selected.
Instead, advertisements announce funds that have performed well in the past. You will never see a performance advertisement for a poorly-performing fund, Professor Ahmed Taha writes in his latest column on Forbes.com.