))
Investors Are Missing Out on Nearly 16% of Investment Returns
Manage episode 448405830 series 3558878
Kandungan disediakan oleh Cameron Valadez. Semua kandungan podcast termasuk episod, grafik dan perihalan podcast dimuat naik dan disediakan terus oleh Cameron Valadez atau rakan kongsi platform podcast mereka. Jika anda percaya seseorang menggunakan karya berhak cipta anda tanpa kebenaran anda, anda boleh mengikuti proses yang digariskan di sini https://ms.player.fm/legal.
In a recent study published by the investment research company Morningstar, they estimate that the average dollar invested in funds by individual investors over the 10 years ending December 31st, 2023 earned a 1.1% lower rate of return per year than the actual investments they were invested in.
This resulted in individual investors out on nearly 16% of the investment’s actual returns each year, even without consideration of any investment fees.
Morningstar updates this data annually as part of their “Mind The Gap” study, and in this episode I break down why this is happening and what this means for investors.
More specifically, I discuss:
- What investing insights does this research show us?
- The difference in investor return “gaps” per asset classes invested in.
- Investors miss out on 50% of taxable bond fund returns!
- Why are many individual investors earning lower average rates of return than their investments themselves?
- The difference in investor return “gaps” based on the volatility of a particular asset class.
Resources:
Key moments are:
00:00 Difference between investment and investor returns.
05:07 Investor behaviors remain consistent over the years despite political and economic uncertainty.
06:37 Return gap varies widely depending on asset class.
12:55 Investors tend to receive about 50% of bond fund returns.
16:33 The more volatile the fund, the more likely investor’s poorly time investment activity.
57 episod
Kongsi
