Understanding the mutual fund

We are still discussing things that fall into baby step 4. We will talk about baby step five on the next post.

I spoke to a friend of mine who wasn’t sure what he was reading when I posted the returns of my mutual funds two post ago. If he didn’t understand it then I am sure others did not either. So here is a brief breakdown of what I was sharing. I choose one fund to highlight for todays post.

If you look at the picture you will notice that they are either highlighted, circled and/or numbered.

The yellow highlight is the ticker symbol of the mutual fund. That is how you can find the fund in any program that can search for mutual funds. Mutual fund symbols are usually 5 letters. In this case the mutual fund ticker symbol is PRMTX.

  1. The pink highlight above the circled 1 is the date the fund information is from. In this case we are looking at the fund report from12/31/2019. If you look at the black circle with the one it shows that this mutual fund gained 33.95% interest for the entirety of 2019. YTD stands for Year To Date. This means that if you had $10,000 invested in this fund your money would have earned $3,395*.

  2. Number 2 in the picture tells you what this fund has averaged over the last 3 years. In the case of this fund it has averaged 20.48% considering 2018 was a down year in the market this is a great return relative to most funds. That means your $10,000 would have earned about $7,488 in interest over those three years.

  3. Number 3 is the average percentage of the fund over 5 years which was 16.06%

  4. Number 4 is the average percentage of the fund over 10 years which was 16.98%

  5. Number 5 is what the fund has done since the fund was created. This number is very important. The inception date in any fund you have should not be less than 5 years. I personally prefer funds that are 10 years or older. I want a proven track record. I only invest in funds that average above 10% for the life of the fund. In this case since 1993 this fund has averaged 14.78%. Think about that. There was a big market drop around the year 2000, 2001 when the towers fell, another in 2008, 2018 was a bad year. Despite all those down times this fund has till averaged 14.78%. The inception date is very important.

In summary you want to have funds that are at least 5 years old or more. I prefer 10 and older that average above 10% since it’s inception. In a future post we’ll talk about what fees you want to avoid and what fees you cannot avoid.

*a small mutual fund fee usually less than 1% will lower your return by that amount. a future post will cover these fees.

If you have questions don’t hesitate to ask here. Take charge of your money!

Your biggest cheerleader on social media,

Gio Marin

P.S. Day 342 please pray for the 7.2 million goal for 2020


© 2023 by Gio Marin. Proudly created with

  • Black Twitter Icon

​Tel: 832-920-1751

Schedule a call

What primary issue should we focus on during your coaching session?