To understand how well (or not) a fund is managed, it’s best to look at the fund’s 3 or 5-year performance.  

For example, the chart below shows the 6-month Net Asset Value (NAV or basically, the price) of a sample unit trust fund. It shows that overall, the fund has performed well. 

Source: Morningstar

However,  if we take a look at the 3-year NAV chart, we could say that the fund hasn’t performed well.

Source: Morningstar

How do you find this information? Use Morningstar’s Fund Tools , go to Funds to Explore and click on the Performance tab. 

Again, what you’ll see are six columns, but the only one you really need to focus on is the last one:  3 or 5 Year Annualised Return. Clicking on either of these columns will sort it for you in order of performance so that the highest numbers are right at the top of that list. 

Here’s a simplified version of the information. You’ll see two pieces of key information: the risk profiles of funds and the returns those funds have made over a 3 and 5-year period. Click here.