mutual fund returns question

[DT4K]

When looking at the fund options for my 401k, Morningstar lists the annualized returns for each fund for different time periods.
Does anyone know if this is before expenses or after?
In other words, can I compare performance just by looking at the return numbers or do I have to subtract the expense ratio to get the net return?

 

[alrocky]

That should be net of the expense ratio. Using past performance is not the best measure with which to compare various mutual funds in deciding which to select as past performance has little predictive value for future performance.

What mutual funds are available to you in your 401(k)?

 

[DT4K]

Fidelity Magellan - FMAGX
American Funds ICA A - AIVSX
Dreyfus Mid Cap Index - PESPX
Templeton Foreign/A - TEMFX
Van Kampen Equity & Inc/A - ACEIX
American Funds Growth A - KAUFX
American Funds NW Per R3 - RNPCX
Lord Abbett Small Cap Value/A - LRSCX
Evergreen Core Bond/I - ESBIX
Columbia Acorn/Z - ACRNX

I know they always say past performance does not predict future performance. But it just seems logical (to someone who knows very little about stocks/mutual funds) that a fund that has consitently performed well over a fairly long term (10 yrs) would be a better bet than a fund that has performed poorly.

Any recommendations on these funds or general recommendations on how to pick?

 

[alrocky]

Fidelity Magellan - FMAGX - 0.53% - LG
American Funds ICA A - AIVSX - 0.54% - LV - load
Columbia Acorn/Z - ACRNX - 0.74% - MG
Dreyfus Mid Cap Index - PESPX - 0.50 - MB
American Funds Growth A - KAUFX - 1.95% - MG
American Funds NW Per R3 - RNPCX - 1.06% - world stock
Templeton Foreign/A - TEMFX - 1.16% - FLV - load
Van Kampen Equity & Inc/A - ACEIX - 0.78% - moderate allocation - load
Lord Abbett Small Cap Value/A - LRSCX - 1.23% - SB - load
Evergreen Core Bond/I - ESBIX 0.45% - bond
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post the above at: Vanguard Diehards -Bogleheads
Delete the "load" notation if you do not pay a load or just say load is waived. If the load is not waived, you should shun that fund.

KAUFX = M*: "Analyst Report Summary: Investors should avoid this mutual fund" & that 1.95% expense ratio is bloody expensive!

Suggest the first 2 funds to get - Large Cap and Foreign. You have 2 Large Cap choices: FMAGX and AIVSX. TEMFX is Foreign and RNPCX is 30% US stocks.

Please note if load is waived for you.