Investor behaviour

The behaviour gap

Studies (e.g. DALBAR, Morningstar 'Mind the Gap') suggest average investors earn less than the funds they own, by mistiming buys and sells.

What it means for your portfolio

Behaviour, not fund selection, is often the biggest drag on real-world returns.

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Missing a handful of the market's best days sharply reduces long-run returns, and the best days often cluster near the worst.

Investors tend to extrapolate recent performance into the future.

General information only, not financial advice. Historical figures are approximate and provided for education.