The Wall Street Journal asked a number of investment professionals and here are some of the answers.
- Picking funds based on their past performance
- Investing in a mutual fund without having the slightest idea what’s inside it (particularly target date funds)
- Choosing a fund based on the number of “stars” it has.
- Focus on recent performance. Only 4.69% of all domestic funds kept their top-quartile rankings for the three
consecutive 12-month periods.
- Too much emphasis on expenses. Ultimately the purpose of investing is to make money, not to save it.
All good advice.