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Home >> Stock Forums >> Whats the difference?

Whats the difference?

matt57 said: "I'm looking at mutual funds and wanted to know whats the difference between the growth of $10,000 chart and the regular chart. Can someone pleas explain?"

Aligator said: "Not sure what you're asking. The 10,000$ chart is a standard used by the mutual fund industry. I think they are required or maybe limited to using this type of chart so that we can compare one mutual fund with another. I actually prefer to chart mutual funds over the course of a year or two and compare the fund chart to the Dow or maybe S&P 500. I like to compare to these two benchmarks because both the Dow and S&P are made up of the best stocks in each group. And if you can outperform the best, then maybe you're doing something. Comparison is easily done at Bigcharts.com."

hasse_john@yahoo.com said: "If you look closely, you will see that some charts are "Gee-Whiz graphs". They don't go on a steady scale to 0. Thus your starting point looks real low, and it looks like you say double, when you go from say 11 to 12."