Compliments of Russ Thornton QAIB 2008
Introduction & Background DALBAR's Quantitative Analysis of Investor Behavior (QAIB) has been measuring the effects of investor decisions to buy, sell, and switch into and out of mutual funds since 1984. The results have shown, to varying degrees, that the average investor earns significantly less than mutual fund performance reports suggest. The goal of the QAIB study is to educate investors and the professionals who advise them about the effects of investor behavior on the real financial outcomes of an investment program. QAIB 2008 examines real investor returns for equity, fixed income, and asset allocation funds for the 20 years ended December 31, 2007. Whether the mutual fund industry is enjoying rapid expansion in times of economic boom, or is being battered by the bears, the key findings uncovered in DALBAR's first study from 1994 remain true: Investment return is far more dependent on investor behavior than on fund performance. Mutual fund investors who hold their investments typically earn higher returns over time than those who time the market.
Š 2008 DALBAR, Inc.
Past performance is no guarantee of future results. 2
DALBAR, Inc. Phone: 617-723-6400
Federal Reserve Plaza 600 Atlantic Avenue
Boston, MA 02210 www.dalbar.com