DALBAR Study Reveals Mutual Fund Investors Lost in 2011

By on March 26, 2012

Mutual fund investors suffered losses last year according to the annual Quantitative Analysis of Investor Behavior (QAIB) study conducted by DALBAR.

The average equity mutual fund investor saw a return of -5.73% in 2011 compared to the S&P 500’s return of +2.1%. DALBAR attributes this dismal performance to generally poor timing decisions by investors as they tended to flee equities during the late summer swoon last year.

The information above was obtained from a March 19, 2012 press release from DALBAR. What the press release does not reveal is the breakdown of the losses by mutual fund category (capitalization, country, etc.).

A perusal of the DALBAR website reveals they examine investor results by equity, asset allocation, and fixed income funds. Details may be available in the study which is available for purchase for $750.00 from DALBAR.

DALBAR’s conclusion from the 2012 results:

Investment results are more dependent on investor behavior than on fund performance. Mutual fund investors who hold on to their investments are more successful than those who time the market.

Source: DALBAR

One Comment

  1. Mike Oxhard

    March 27, 2012 at 3:27 pm

    That’s why people should have diversified portfolios and dollar cost average.

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