Denton County Living Well Magazine Summer 2015 | Page 31

behavior) to a fund’s reported performance.
Many researchers have compared a fund’s advertised performance to its investors’ returns. In most funds, investor
returns tend to lag behind fund performance, which means
that investors are making poor timing decisions. One research paper linked a large performance gap to higher
structural cost. The results were astonishing!

a fund represent the fund’s net gains from the sale of securities held in its portfolio