Similarly, today's worst performing mutual fund can turn into the best-performing mutual fund tomorrow. Many retail investors realized big losses chasing the illusion of the best mutual funds. And, while chasing this illusion, they missed the opportunity of attaining their financial and investment objectives.
Generally, the investor who invests in mutual funds looks into the returns of all the funds over the last one to three years and selects the fund which, over the one to three-year period, yields the best return. Again, this too is not the right way to invest in mutual funds.
As the saying goes, not all shoes are going to fit. The fund that may fit just right for you is not necessarily the one that will best suit the other investor. So, when investing in mutual funds, it is necessary to determine your investment objective.