official statistics in the uk show that the average investor loses out not through poor fund management but bad asset allocation
As mutual fund sales are a well-known reverse indicator in the industry, it would be useful to see if it would be possible to calculate performance for the average fund holder, as distinct from the unit price of his fund. Thanks to very detailed official statistics it is possible to do so in the UK. The results are shocking and teach some important lessons for retail investors and their advisers. Calculating total returns This is possible because the Office of National Statistics (ONS) provides both a balance sheet and a cash flow statement for the unit trust sector. Capital gains ...
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