Beware Top Funds With Poor Investor Returns
Investor Return versus Fund Return
- Investor return can be very different from the widely quoted figures for total fund return.
- 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%.
- 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.
- Many studies have shown that long-term shareholders receive the best returns.
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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…