QAIB 2008

For years, mutual fund companies have been marketing their products using the long-term results of a lump-sum investment. The results typically show that the funds' annualized returns have outpaced their designated benchmarks and inflation, implying that if investors purchase fund shares and hold them for similar time periods, they may achieve similar results.

Reality, however, is quite different from this scenario – and it's not the fault of the fund companies. In this year's Quantitative Analysis of Investor Behavior, DALBAR illustrates how investors are often their own worst enemies. By examining actual fund inflows and outflows during the 20-year period ended December 31, 2007, the analysis finds that investors often buy and sell at the worst possible times – and achieve commensurate returns.

This year's report also offers strategies to help advisors guide investors toward proper investment decision-making.

QAIB 2008 – Advisor Edition is an abbreviated version of the full study that provides a look at selected key findings, including:

Average investor returns versus market benchmarks and inflation

Investor timing behavior

Average investor holding periods

Results of a hypothetical systematic investing program versus actual investor results