The returns received by the average individual investor on funds managed by investment companies will probably be superior to the average results for a specific U.S. or international market.

Question

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According to numerous studies, the average individual investor tends to achieve lower returns than the overall market due to emotions such as fear, greed or panic leading to buying high and selling low, among other factors. Therefore, the returns received by the average individual investor are likely to be inferior to the average results for a specific market.

The Returns Received by the Average Individual Investor on Funds