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How to Evaluate the Mutual Funds in your 401k

Five Ways to Pick Mutual-Fund Winners
FiLife Take: Sometimes it’s hard to tell whether your mutual funds are doing poorly or whether it’s just the markets that are struggling. Jonathan Burton uses pretty basic language to explain the five things you should consider when evaluating mutual funds in your 401k: fund fees, risk-adjusted returns, relative performance, portfolio yield and the manager’s performance history.

One more thing to keep in mind: be sure to compare apples to apples when evaluating your mutual funds. For example, you want to compare your large cap US stock fund to other large cap US stock funds, your international fund to other international funds, and so on.