Why Mutual Funds Aren’t Cutting it

Why would you consider ANY path leading to less financial success? When you invest, you want high returns. You want success. However, for many investors, they unknowingly follow paths leading to less success.

Consider the chart below showing several examples of investing in different funds. One path uses the S&P 500 as a comparing index. A closer look at the circled items shows the equity funds under performed by a margin of -6.18% on the 30 Year annualized. For the 12 months, equity funds under performed -4.70%. This type of investing puts you on a path to less success.

You can see the path of the average equity mutual fund investor was less successful. The chosen investments under performed.

In a post written by Lance Roberts, he explains some of the problems associated with popular investment approaches. Some investors think they can beat an index. An index is a benchmark and cannot be beaten. 

Says Roberts, “The index is a mythical creature, like the Unicorn, and chasing it takes your focus off of what is most important – your money and your specific goals. Investing is not a competition and, as history shows, there are horrid consequences for treating it as such.”

In the same post, Roberts tells of another path that leads to less success is investor psychology. This graph shows the difference between reality and expectations.

Again, using the S&P 500 as a benchmark, you can see the underperformance of the investor and the percentage of performance lag shown in red. According to Roberts, “…the reality is that investor psychology is the biggest impediment to long-term success.”

Studies have shown that the biggest reason for less success by investors comes down to psychology. And it is mainly behavioral biases that lead to poor investment decision-making.

If investor psychology is leading to less success, would you like to learn how to increase your success? Take the emotions out of investing.

iFlip uses Algorithmic Intelligence (AI) software to buy, sell and hold your money. It’s all done for you. No emotional trading involved!  AI doesn’t care what the President just tweeted or what is happening in the news. It’s fully automatic and no experience is necessary.

If you are more hands on and want to make your own trades, you can do that, too. And do it commission free with fractional shares. 

To make things even easier for you, iFlip will be launching a Mobile Phone App November 2019. The high tech and simple design will allow you to use AI software on your phone, trade stocks with the swipe of your finger or trade fractional shares of stocks. Join the waitlist for the Mobile Trading App.

Pop on over to iFlip to get started on your path to financial success. 

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