The New fund Myth
6. You should wait until a fund has at least a 3-year track record before investing.
- The fact is that brand new funds often enjoy superior gains. New funds from top fund families often show explosive gains in their rookie year. Montgomery Small Cap was up 98.8% in 1991, Oakmark was up 48.9% in 1992, DFA Pacific Rim Small Company was up 92.6% in 1993, and Janus Olympus was up 30% the first 9 months of 1996.