Fair compare
Two strategies can “average the same” with different drawdown paths and tax—compare spendable dollars, not one headline return.
Rule: same vacancy rule, same loan structure, same reserve, same years—then rank diversification.
Read both
Headline price or past performance is marketing. Rewrite each option as cash in and out by month or year.
Walk back to Diversification, then reopen Related lesson with your figures.
Check your numbers now
Two real rows
Fund A higher past return, higher fee; Fund B lower fee, broader index—ten-year spreadsheet may favor B after costs.
Checklist
| Looks better first | After alignment |
|---|---|
| Higher backtest | Higher fee drag |
| More stocks | More volatility |
| Familiar brand | Concentration risk |
Same rules for both Then choose
Match rules
Core lesson
Go deeper: Diversification — if one number still does not feel right, enter it in the calculators above and change one input at a time to see what drives the result.
Use the calculator
FAQ
- Where is the main lesson?
Diversification is the hub with related lessons linked from it.
- Which calculator should I open first?
Use Investment growth or Lump sum growth for long horizons; Savings goal for targets; Debt payoff when comparing to loans.