Why I'm Not A Fan.

Minyanville is out with a report from Thomson which I guess has used data from Dalbar Inc. It states "that investors in stock mutual funds over the 20-year period ended 2005 have averaged annualized gains of 3.9% compared with 11.9% for the S&P 500 Index."

"The lost opportunity means investors missed out on nearly 80% of the stock market's return for the period due to poor timing decisions, according to a new study by investment research firm Dalbar Inc."

"Meanwhile the average investor in fixed-income funds has earned only 1.8% annually compared with a 9.7% gain for the Lehman Aggregate Index which measures the US bond market, Dalbar said."*

I've seen Dalbar's research in the past and this is pretty consistent with what they have always said. I think this might be more an indictment on individual investors as opposed to the mutual funds themselves and it is part of the investment theme we are discussing this year. But I also think it shows that mutual funds themselves may not be the best way to invest assets in the markets anymore.

*Source: Minyanville News 1:37:21 PM {EST} published on 05/24/06.