BOSTON--(BUSINESS WIRE)--By all measures, 2008 was the year that wiped out wealth—and DALBAR’s Quantitative Analysis of Investor Behavior (QAIB) is no exception. In its 15th annual study of mutual fund investor behavior, DALBAR discovered that equity, fixed income and asset allocation fund investors experienced average annual losses for all time periods examined except the longest (20-year) time frame. And even those positive returns did not keep pace with the average inflation rate.
“The dramatic events that continue to plague our financial markets have provoked panic, which exacerbates the ongoing carnage,” said Lou Harvey, president of DALBAR. “For 15 years, QAIB has shown that investor returns lag what performance reports and prospectuses would lead one to believe is achievable. While those returns are, in fact, theoretically achievable, the reality is that investors are not rational, and make buy and sell decisions at the worst possible moments,” he said.
Among the studies findings:
QAIB suggests that financial firms and advisers help mitigate the effects of investor behavior by:
For more information on these findings, or to purchase the full study, please contact Stephanie Ptak at 617-723-6400 or firstname.lastname@example.org
DALBAR is the leading provider of Qualified Default Investment Alternative (QDIA) Validations and fiduciary adviser audits and certifications for ERISA plans and IRAs. DALBAR has a 30-year history as an independent third-party evaluator in the financial services industry. DALBAR certifications are also recognized as a mark of excellence in adviser services, communications, E-business, and customer service.