How To Save 15% More of Your Mutual Fund or ETF

Core Insights - Average investors may experience lower returns than expected, with a Morningstar study indicating a 15% loss in returns over 10 years, where investments in ETFs and mutual funds yielded 6.3% annually compared to the funds' 7.3% return [1][2] Group 1: Investment Performance - The gap between investor returns and fund performance highlights significant lost income potential over time [2] - Investors who opt for volatile stocks, mutual funds, and ETFs are less likely to realize the full potential of their investments due to increased trading frequency and associated fees [3][4] Group 2: Investment Strategy - A hands-off, buy-and-hold investment strategy generally results in smaller performance gaps compared to frequent trading [5][6] - Emotional and discretionary trading can significantly diminish long-term gains, with data showing that missing the market's 10 best days over 30 years could halve returns [6] - Adjusting holdings to include more stable investments can facilitate a hands-off approach, making it easier to endure market fluctuations [7]