Research shows that investors tend to have lousy timing when buying or selling mutual funds, performing worse under the pressure of high volatility and doing better with more middle-of-the-road funds,…
Tag: Investor Returns
Bridging The Gap Between Investor & Investment Returns
Sometimes a fund will show a great return, but the individual investor’s own return on their investment doesn’t match up. 10 years ago Carl Richards coined the term “behavior gap”…
Investors Doing Just Fine As Their Own Managers
There’s never been more places for investors to put their money, from Wall Street banks to discount brokers to free trading apps where you can purchase low-cost ETFs, and an…
Cathie Wood’s ARK: Rapid Growth Has Hurt Investors
The flood of growth experienced by Cathie Wood’s ARK Invest, from assets totaling $3.5 billion before the pandemic to $50 billion a year later, has “come back to bite her…
Morningstar: Minding the Gap in 2019
A recent article in Morningstar reports the findings of the firm’s annual Mind the Gap study in which it evaluates the cost to investors associated with the timing of investments.…
Morningstar: Investors are Making Better Use of Their Funds
A recent article in Morningstar highlights the firm’s research into historical trends in fund investor returns which show, “times have been good lately, and we can see that in a…
Investors Spooked by the Market Tumble Should "Buy and Hold"
Highlighting the fact that future stock market movements are “unknowable” and that trying to predict them can be “dangerous,” a recent Wall Street Journal article quotes the legendary investor Peter…
The Biggest Failure of the Investment Management Industry
By Jack M. Forehand (@practicalquant) — The investment management business has improved dramatically in the past twenty years. The days of brokers selling high priced products to unsuspecting consumers that…
What are Investor Returns, Really?
There is some confusion around why the total investor return data published by Morningstar differs from the returns that investors are actually earning. Russ Kinnel, director of manager research for…
