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Poor Timing Decisions Continue to Lower Actual Mutual Fund Returns
Studies show that poor market timing and emotional decisions reduce mutual fund returns, while disciplined SIP investing improves long-term outcomes.
Research into investor behaviour shows that many mutual fund investors earn significantly lower returns than scheme performance due to mistimed entry and exit decisions. Common patterns include investing after rallies and exiting during market corrections, which erodes compounding benefits. Financial planners emphasise that disciplined SIP investing and long-term holding can help bridge this gap.