Average Mutual Fund Retention Rates - Show 27-2

Tuesday, April 24, 2012 4,676 views

The new 2012 Dalbar report states that at no point in time have average investors stayed invested long enough to derive the benefits of the investment markets. The emotions of investors often match the gyrations of the market, resulting in fear-based investing.  Investors have lost out on returns they could have earned if they had held on. Based on a 20-year analysis, Mark and Tom show the average investor holds onto a mutual fund for only 3.29 years, whereas IFA recommends holding an all-equity portfolio for 15 years. The time difference makes a significant returns difference.

Average Mutual Fund Retention Rates and Recommended Holding Period

Time Diversification of 20 Index Portfolios Based on Monthly Data Rolling Data

PDF of Slides in this segment

mark hebner show 27: dalbar study: the cost of investor irrationality average mutual fund retention rates - show 27-2dalbarinvestor behaviorbenjamin grahamfinancial media