Investors lose 15% of returns over 10 years due to common mistakes. Are you getting the most from your investments?

Core Insights - The article discusses the discrepancy between reported mutual fund and ETF returns and the actual returns experienced by investors due to timing of cash flows [1][3][5] - It highlights that investor behavior, such as adding money after rallies and withdrawing during selloffs, can significantly impact personal returns, leading to a gap of approximately 15% over a decade [2][5] Performance Analysis - Morningstar's "Mind the Gap US 2025" report analyzes the difference between time-weighted returns (reported by funds) and dollar-weighted returns (actual investor returns) over a 10-year period [3][4] - For the 10 years ending December 31, 2023, fund investors earned an average annual return of 6.3%, while the funds reported a return of 7.3% [5] Investor Behavior - The report emphasizes that the difference in returns is not solely due to poor investment decisions, as even disciplined practices like steady contributions can lead to discrepancies [5]