Understanding the Mutual Fund Industry + their games

Ever look at Mutual Fund prospectus and all the high star funds that they have by their names? All the four and five star funds they have, some of which have outperformed the S+P 500 over the last few years by a decent margin? What a well managed company you might think to yourself, I'm giving them my money.
What you don't know is that companies regularly close underperforming funds, and eliminate all traces of them from their marketing brochures. They start five funds, only one of which will outperform the market, and then close down the others and market to you how awesomely they've performed.
This sleight of hand is not terribly different than the sports picker with a database of 800,000 who sends "FREE guaranteed picks" except he sends out one side to half, and the other side to the other half. Now he has 400,000 people he's successfully picked for, repeat the process, eliminate half, and now repeat til you're down to 100,000 potential people you, the sports genius, have beaten the bookies three times in a row.
NOW is when you SELL your pick to those 100k people with a track record of success.

Show off only your wins, that's what mutual fund companies do. Enjoy yourself as you pick a "good fund."

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