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Quantitative Analysis of Investor Behavior (QAIB)

What is QAIB?DALBAR's 2014 Quantitative Analysis of Investor Behavior (QAIB) is the twentith annual edition of a report that examines the returns that investors actually realize and the behaviors that produce those returns.

Since 1994, DALBAR's 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 time frames. The results consistently show that the average investor earns less - in many cases, much less - than mutual fund performance reports would suggest.

The goal of QAIB is to continue to improve the performance of independent investors on the one hand and of professional financial advisors on the other hand by incorporating the factors that influence behavior that determines the outcome of investment or savings strategies. QAIB offers guidance on how and where investor behaviors can be improved.

QAIB 2014 examines real investor returns in equity, fixed income and asset allocation funds. The analysis covers from inception (January 1, 1984) to the period ending December 31, 2013, encompassing the crash of 1987, the drop at the turn of the millennium, the crash of 2008, plus the recovery periods of 2009, 2010 and 2012. This year’s report will focus on the ways in which practices in the investment community can alter the money-losing behaviors of investors.

The report explains how investors and advisors adapt to changing market conditions and produce investor returns using investor behaviors, the psychological factors that drive them and the knowledge of how investment classes have acted in the past.

What does the Report include?

  • Why Investors Lose Money – This section will discuss best practices to avoid money-losing behavior.
  • Set Expectations Below Market Indices – Investors should set explicit and achievable expectations when investing.Control Exposure to Risk - The bottom line is investors should seek capital preservation.
  • Monitor Risk Tolerance – Risk tolerance is not a static variable.
  • Present Forecasts in Terms of Probabilities - This section will discuss how asset allocation must change continuously in order to control the exposure to risk.
  • Systematic Investing - This section shows the results for the average investor in equity, fixed income or asset allocation mutual funds compared with the hypothetical process of systematic investing.

What is the Cost of the Report?


How do I order QAIBYou can order the QAIB report by calling 617-723-6400 or at www.QAIB.com.

 
 


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