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Lipper Averages

Comparisons to Other Mutual Funds Can Be Misleading

Dan Solin | Posted 06.03.2012 | Business
Dan Solin

Since 100 percent of its retirement funds beat their 5-year Lipper average, investors could believe that T. Rowe Price has consistently "beat the market". Is this accurate? Not if you understand how the use of benchmarks can be misleading.