In your interest.
Online Personal Finance Magazine
No beating about the bush.
James Montier is a thoughtful person. As a global equity strategist with Dresdner Kleinwort Wasserstein, a top broking firm, he believes in taking an independent approach to understanding all about the investment process. In November 2005, he had written a paper titled “Seven Sins of Management: A Behavioural Critique”. This article was widely read by the investing community but it is...
What you make does not depend on what the fund makes but on how you behave, finds a study on mutual funds
It is bad enough that mutual funds have an uphill struggle to beat the indices. What makes the investment returns from funds worse is investors’ own behaviour. A recent study by Dalbar, Inc. (a US research firm) concluded: “Investment return is far more dependent on investor behaviour...
Why do investors latch on to past performance of funds even though it has little correlation with the future? Debashis Basu explains
In our last issue, we discussed how a study by Litman/Gregory Fund Advisors (LGFA) “failed to unearth a significant positive correlation between past relative performance and future relative performance.” However, the idea that the past gets repeated is firmly...