Investor generally do not get the full performance from the mutual funds they own.  Behavioral finance studies have identified some of the reasons for this.  Studies by firms like Morningstar and DALBAR have documented investors’ under-performance.  The same factors hamper investors that buy individual securities.
Chuck Jaffe discussed this in his April 3, 2011 commentary at MarketWatch.  He observes that funds should be chosen based on what they do and how they fit into an investors plan.
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