Quantitative Analysis of Investor Behavior

Since 1994, DALBAR's Quantitative Analysis of Investor Behavior (QAIB) has been measuring the effects of investor decisions to buy, sell and switch into and out of mutual funds over both short and long-term timeframes. The results have consistently shown that the average investor earns less – in many cases, much less – than mutual fund performance reports would suggest.

The goal of QAIB is to improve the performance of investors on the one hand and of financial advisors on the other hand. This is done by identifying those factors that influence investor behaviors that determine the outcome of investment or savings strategies and offer guidance on how and where these behaviors can be improved.

In a one hour presentation, DALBAR will share a four-part approach that can be used to relieve the decision making burden that has been put on investors and replace it with a more prudent course of action. The presentation will include:

  • QAIB History/Rationale
  • Why Investors Lose Money
  • Four Part Approach to Avoid Money-Losing Behavior
    • Setting Appropriate Expectations
    • Controlling Investor Exposure to Risk
    • Monitoring Risk Tolerance
    • Presenting Forecasts in Terms of Probabilities

The four-part approach is supported by research that proves the variability of risk within each asset class and the volatile risk tolerance of individuals. Investors’ unrealistic expectations are addressed by using realistic expectations and probabilities in place of a mindless warning that “past performance does not guarantee future results.”

The typical fee for a one-hour presentation is $10,000 plus travel related expenses.

Visit the QAIB Store

For more information about QAIB, please contact Cory Clark at 617.624.7156 or visit the online store.