Investing · General financial education

Past performance is not a forecast

Strong past performance does not say what comes next. Markets and funds can weaken after strong phases and the reverse.

In more detail

Charts and annual returns are looking back. Fees, risk and time horizon remain separate questions. 'It did well' is not a guarantee and not a buy order. Finmon recommends no investment.

Background

Past performance is not a forecast. That line is standard in fund documents. This is education, not a timing tip. It sits next to risk, ETFs, your time horizon, and fees.

An example

A fund shows plus 20% last year. That does not say whether next year is plus or minus. It is looking back.

A common misconception

What did well will keep doing well.

Past performance is looking back, not a prediction.

Source: Investor.gov · Introduction to investing. Last reviewed: 2026-11-09. Editorially reviewed on 2026-11-09. Next review 2027-11-09. Version 0.2.0. Finmon explains. It does not advise. Not investment, tax or legal advice.