Are mutual fund investors too stupid to get the most out of their dollars? Morningstar says no, according to an AdvisorOne report.

The popular theory that retail investors time their investments and cashouts poorly, minimizing returns, may not be true, said John Rekenthaler, Morningstar's research vice president, at the firm's conference this week.

When returns for both investors and funds are calculated the same way, there is a "return gap" of 1.01 percent for domestic-stock funds, 3.11 percent for international-stock funds, 1.35 percent for municipal bonds, 0.87 percent for taxable-bond funds, and 0.84 percent for allocation funds, wrote reporter Janet Levaux.

Rekenthaler stressed that this did not mean investors were stupid.

For more details, check out the original article here. 

Edited by: Ben Geier


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