Fund Investors' Biggest Mistakes and How You Can Avoid Them
To become the best possible investor you can, it is imperative to avoid the big mistakes. Behavioral finance researchers investigate how human beings study and act on investment information and their findings can benefit investors.
Those who invest directly in stocks are particularly prone to making devastating mistakes, perhaps even experiencing Enron-style setbacks.
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But mutual fund investors are not insulated against these mistakes. In fact, a fund manager can compound any mistakes made by fund owners—after all, professionals are human. Thus, it should come as no surprise that behavioral finance research makes a strong case for buying and holding low-cost, broadly diversified index funds.
The Biggest Fund Mistakes
The four biggest behavioral mistakes investors make with mutual funds are:
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Discussion
This is a super lesson on investing. I hope I can follow it more in the future.
Thanks for publishing it!
posted 6 months ago by Robert Rankin from Florida
The longer I have been investing,and I have been investing for many years, the more I'm convinced that indexing is the key to a healthy portfolio and a healthy state of mind. Nice article.
posted 6 months ago by Steven Duncan from New York
great article. Can i pay (a fee) the author to review my several portfolios with MANY holdings in hopes of beating the market? I have been investing for decades but at my age (70s) enough is enough, need to simplify for all the reasons you mentioned and then some. Thanks
P.S. I am serious about paying for your service
posted 4 months ago by K.Terry from Minnesota
