It’s a disturbing fact: Many mutual fund investors (or investors in general) do the opposite of what they should be doing. The numbers don’t lie, yet no matter how many times we, in the mutual fund industry, try to educate the investors on why they shouldn’t market time, they always feel that they know better and go against our recommendations. After each bear market, a number of studies come out to prove time and time again that buy and hold is the strategy when it comes to mutual fund investing.
Stan Luxenberg of TheStreet.com wrote a story on a new study by Morningstar suggesting how damaging ill-time trades can be for mutual fund investors. Third party articles and studies like these may assist you in educating your investor base on the merits of buy and hold to help maintain long-term investors and draw more “sticky” money as opposed to performance chasers.
