The following quote also comes from”- the QAIB report: “As this report has shown for the 17th time in as many years, mutual fund investors consistently underperform the relevant index. The report also shows that most of this loss in performance is due to psychological factors that translate into poor timing of their buys and sells (investor behavior).”-If you are already a client of mine, you know I am not a fan of Managed Mutual Funds. There is a reason that Wall Street spends more money promoting Managed Mutual Funds than any other investment. They are expensive to the shareholder. That translates into enormous fee’s to the Mutual Fund Company compared to other types of investments. These fees add to the dismal performance of these funds. There are better ways to achieve equity exposure with much lower fees.
The Dalbar Inc study shows investors make imprudent decisions, both buying and selling, relying on what they read and hear in the media. Following a disciplined approach with a scientifically backed strategy will improve results in the long run.
Please comment or call to discuss how this affects you and your company plan.
- Should you trust a fallen mutual fund star? (thenewspundit.com)
- Advisors and Mutual Funds (36properties.wordpress.com)
- All About Mutual Funds: Actively Managed Mutual Funds, Index Funds & ETFs (bargaineering.com)
- Beware Mutual Fund Managers: Maria Bartiromo’s Husband Wants To Steal Your Clients (businessinsider.com)