Staff
Even though past performance is no guarantee of future results, investors still like to pick investments based on how well they performed.
“The biggest pitfall is that people chase performance,” said Terrance Odean, Rudd Family Foundation professor of finance, Haas School of Business, University of California Berkeley.
Investors buy the mutual fund they wished they owned last year and they try to time the market, he said at Benefits Canada’s DC Plan Summit.
Unfortunately “they’re not good at picking funds,” Odean added. “And they’re really not good at market timing.”
Watch more videos:
