Average Returns on Mutual Funds: Last 30 Years

With over 10,000 mutual funds active in the United States, choosing an investment strategy can be extremely overwhelming. Combine those options with the additional mix of commodities, bonds, shares, property, and securities – the selection can make you feel like a kid in a candy store.

Over the last thirty years, the United States economy has seen some historic highs and terrifying lows. The mutual fund industry kept rolling along and taking their punches as well. It is challenging to summarize the past history for the average return on mutual funds for the last thirty years, as there are cases where one year a particular fund is the hottest thing out there while another launched at the same time is a complete and dismal failure.

Much of the success in investing in mutual funds has to do with the timing of events. All fund managers have one goal, that their mutual fund will generate a high rate of return. The managers of those properties calculate the value of each share daily by summing up the value of all assets in the fund’s portfolio and dividing that figure by the number of fund shares outstanding. This results in the funds’ net asset value (NAV).

Each mutual fund is present with the official disclaimer that “Past performance is no guarantee of future results.” Even if an investor chooses a mutual fund that produced huge returns historically for the past thirty years, based on the state of current affairs, that same mutual fund can lead to great disappointment.

If you’re truly interest in finding the average return history for a mutual fund for the past thirty years, you need to research each investment property separately. Since they are a high-risk investment that works in direct correlation with the stock market, despite having a 21% return rate one year, there can be an immediate loss looming on the horizon.