For more than 20 years on radio and television, we have been warning our viewers and listeners that, before buying any mutual fund, be sure to track a mutual fund's performance for AT LEAST the past five years (see, How to Pick the Best Mutual Fund).

We are not accusing the mutual fund business of deceptive sales practices, but we do want to alert you to a recent development. 

The average stock mutual fund lost 0.5% over the past five years so don't expect full page ads touting their five year records!

Now that a new year has begun, they WILL tout their performance for the past THREE YEARS (2009, 2010 and 2011) when the average mutual fund gained 51%.

All well and good... BUT don't be swayed by less than a FIVE year record.

The funds are VERY pleased to now NOT have to include a bad year for funds (2008) in their "last THREE years" reports.

BOTTOM LINE: "In a stiff wind, even turkeys can fly!"

In a strong market, funds do well.

But how do they perform in negative market cycles?

That's a question that you'd better ask now more than ever as international markets continue to be less predictable than ever.

For more tips on Mutual Fund investing, see:

• A Mutual Fund for Every Investor
• How to Lower Your Mutual Fund Taxes
• Important Warning for Mutual Fund Investors

Read More In: Invest Wisely