Investor Return versus Fund Return

  1. Investor return can be very different from the widely quoted figures for total fund return.
  2. For example, the top-rated Fidelity Leveraged Stock fund has an annual return over the last 10-year period of 14.5%.  However, the average investor in this fund had an average annual return of only 4.0%.
  3. The reason for the gap is, most investors didn’t buy and hold for the 10 years. Instead, the average dollar in the portfolio stayed invested for short periods.
  4. Many studies have shown that long-term shareholders receive the best returns.

Learn more in this article:

Beware Top Funds With Poor Investor Returns – Yahoo! Financehttp://finance.yahoo.com/news/Beware-Top-Funds-With-Poor-tsmf-514712389.html?x=0If you invested in Fidelity Leveraged Stock a decade ago, your total annual return would have been 14.5%. But the typical shareholder had an investor return of only 4.0%. The reason for the gap is, most investors didn’t buy and hold for the 10 years. Instead, the average dollar in the portfolio…