Interesting Number Facts on Investment Returns

Christiflora · Feb 21st, 2007, 02:43 PM

Someone from this forum wants to know my mutual fund picks. In addition to providing the criteria for my choices, I think it would be helpful to include some historical returns. While I was cruching the numbers and comparing against standards (such as major indices, CD fixd returns, inflation rate, and etc.), I found some interesting facts that I want to share with you. Therefore, instead of sending the fund info to the requestor through a PM, I want to post it here.

Conclusion: I am happy to confirm my fund choices as appropriate for me, considering their above average returns, and my risk level. As I said in previous posts, in order for me to seek higher returns, I shall explore asset managers who can deliver performance better than me.

Hope you find the info interesting or helpful.
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For the following calculations, assume that I invest $100 in each product on 12/31/1998, one year before the last tech bubble of 2000-2002. If I leave my investment untouched until 2/16/07, 8 yrs and 1 1/2 months later, my balance would be as indicated below.

1. Fixed CD at 3% annual interest, compounded yearly (to mirror inflation): $127

2. Fixed CD at 5% annual interest, compounded yearly: $149 (Use this amount as judgement reference.)

3. Invest in a product that has the same return as Dow: $136

4. Invest in a product that has the same return as S&P500: $117

5. Invest in a product that has the same return as Nasdaq: $113

6. Invest in a product that has the same return as Russell 2000: $190

7. Invest in tech stocks (including dividends) - Cisco: $119, Intel: $76, Microsoft: $96.

8. Invest in "safer" stocks (including dividends) - Pfizer: $75, General Electric: $125, Proctor & Gamble: $164

9. Invest in my favorite stocks (including dividends) - Boeing: $315, Morgan Stanley: $263, and Church&Dwight: $476

10. Invest in my favorite mutual funds (including dividends. assume equally invested in each of the 18 funds that had inception dates as far back as 12/31/98): $288

envyme · Feb 21st, 2007, 03:01 PM

Thanks for sharing.

Christiflora · Feb 21st, 2007, 03:23 PM

Oops! Lost the 2nd post. Try again.

Here are my fund picks, 22 of them. 18 of which were included in the above calculations. Although I have non-Fidelity funds, I show only Fidelity funds to make my illustration simple to understand.

Fund TypeFundStarYear '062/16/07Large ValueFSLVX416.70%3.74%Large BlendFBALX511.20%3.60%FCNTX511.28%3.37%FSDIX513.44%5.00%FDEQX414.14%3.93%Large GrowthFDCAX413.37%5.75%FDGRX49.56%2.75%Mid ValueFDVLX414.57%6.25%FSMVX414.35%7.02%Mid BlendFLVCX517.18%5.94%Mid GrowthFMCSX414.72%7.21%Small BlendFSLCX312.19%4.89%SpecialtyFSDAX520.47%6.77%FSENX414.44%0.53%FSESX28.99%-0.95%FSLBX420.84%6.09%FSMEX53.90%5.56%FSNGX35.67%4.75%InternationalFEMKX233.35%2.75%FDIVX522.37%3.68%FIGRX524.06%3.61%FICDX515.07%4.27%Average of Fidelity Funds15.08%4.39%IndicesNasdaq8.70%3.37%Dow14.00%2.44%Russell 200014.59%3.83%S&P 50011.99%2.65%

One of my selection criteria: star rating of 4 or 5. Anything lower must expect high fluctuations and thus risk. Not recommended for beginners.

Christiflora · Feb 21st, 2007, 03:36 PM

Quote:

Originally Posted by Christiflora

Oops again! Did not realize that I cannot copy a table here.

Fund Type FundStar Year '06 2/16/07
Large Value FSLVX 4 16.70% 3.74%
Large Blend FBALX 5 11.20% 3.60%
FCNTX 5 11.28% 3.37%
FSDIX 5 13.44% 5.00%
FDEQX 4 14.14% 3.93%
Large Growth FDCAX 4 13.37% 5.75%
FDGRX 4 9.56% 2.75%
Mid Value FDVLX 4 14.57% 6.25%
FSMVX 4 14.35% 7.02%
Mid Blend FLVCX 5 17.18% 5.94%
Mid Growth FMCSX 4 14.72% 7.21%
Small Blend FSLCX 3 12.19% 4.89%
Specialty FSDAX 5 20.47% 6.77%
FSENX 4 14.44% 0.53%
FSESX 2 8.99% -0.95%
FSLBX 4 20.84% 6.09%
FSMEX 5 3.90% 5.56%
FSNGX 3 5.67% 4.75%
International FEMKX 2 33.35% 2.75%
FDIVX 5 22.37% 3.68%
FIGRX 5 24.06% 3.61%
FICDX 5 15.07% 4.27%

Average of Fidelity Funds 15.08% 4.39%
Indices Nasdaq 8.70% 3.37%
Dow 14.00% 2.44%
Russell 2000 14.59% 3.83%
S&P 500 11.99% 2.65%

One of my selection criteria: star rating of 4 or 5. Anything lower must expect high fluctuations and thus risk. Not recommended for beginners.

Hope this try works.

Feb 21st, 2007, 02:43 PM	#1
Christiflora Member	Interesting Number Facts on Investment Returns Someone from this forum wants to know my mutual fund picks. In addition to providing the criteria for my choices, I think it would be helpful to include some historical returns. While I was cruching the numbers and comparing against standards (such as major indices, CD fixd returns, inflation rate, and etc.), I found some interesting facts that I want to share with you. Therefore, instead of sending the fund info to the requestor through a PM, I want to post it here. Conclusion: I am happy to confirm my fund choices as appropriate for me, considering their above average returns, and my risk level. As I said in previous posts, in order for me to seek higher returns, I shall explore asset managers who can deliver performance better than me. Hope you find the info interesting or helpful. ------------------------------------------------------------------------ For the following calculations, assume that I invest $100 in each product on 12/31/1998, one year before the last tech bubble of 2000-2002. If I leave my investment untouched until 2/16/07, 8 yrs and 1 1/2 months later, my balance would be as indicated below. 1. Fixed CD at 3% annual interest, compounded yearly (to mirror inflation): $127 2. Fixed CD at 5% annual interest, compounded yearly: $149 (Use this amount as judgement reference.) 3. Invest in a product that has the same return as Dow: $136 4. Invest in a product that has the same return as S&P500: $117 5. Invest in a product that has the same return as Nasdaq: $113 6. Invest in a product that has the same return as Russell 2000: $190 7. Invest in tech stocks (including dividends) - Cisco: $119, Intel: $76, Microsoft: $96. 8. Invest in "safer" stocks (including dividends) - Pfizer: $75, General Electric: $125, Proctor & Gamble: $164 9. Invest in my favorite stocks (including dividends) - Boeing: $315, Morgan Stanley: $263, and Church&Dwight: $476 10. Invest in my favorite mutual funds (including dividends. assume equally invested in each of the 18 funds that had inception dates as far back as 12/31/98): $288

Feb 21st, 2007, 03:01 PM	#2
envyme God's Creation Location: I'm A Brain In A Jar	Re: Interesting Number Facts on Investment Returns Thanks for sharing. __________________ Quotes From Yoda: *- Anger, fear, aggression... the dark side are they. Once you start down the dark path, forever will it dominate your destiny.* *- Train yourself to let go of everything you fear to lose.* I am on a SERIOUS

Feb 21st, 2007, 03:23 PM	#3
Christiflora Member	Re: Interesting Number Facts on Investment Returns Oops! Lost the 2nd post. Try again. Here are my fund picks, 22 of them. 18 of which were included in the above calculations. Although I have non-Fidelity funds, I show only Fidelity funds to make my illustration simple to understand. Fund TypeFundStarYear '062/16/07Large ValueFSLVX416.70%3.74%Large BlendFBALX511.20%3.60%FCNTX511.28%3.37%FSDIX513.44%5.00%FDEQX414.14%3.93%Large GrowthFDCAX413.37%5.75%FDGRX49.56%2.75%Mid ValueFDVLX414.57%6.25%FSMVX414.35%7.02%Mid BlendFLVCX517.18%5.94%Mid GrowthFMCSX414.72%7.21%Small BlendFSLCX312.19%4.89%SpecialtyFSDAX520.47%6.77%FSENX414.44%0.53%FSESX28.99%-0.95%FSLBX420.84%6.09%FSMEX53.90%5.56%FSNGX35.67%4.75%InternationalFEMKX233.35%2.75%FDIVX522.37%3.68%FIGRX524.06%3.61%FICDX515.07%4.27%Average of Fidelity Funds15.08%4.39%IndicesNasdaq8.70%3.37%Dow14.00%2.44%Russell 200014.59%3.83%S&P 50011.99%2.65% One of my selection criteria: star rating of 4 or 5. Anything lower must expect high fluctuations and thus risk. Not recommended for beginners.