But, the investors did much worse. But, the investors did much worse. Let's think about why this happens. It is not uncommon for a hot fund's assets to triple after a spectacular year. When the previously successful and inevitably turns less hot, or even cold, and starts to produce losses, the average investor tends to lose patience and sells.
Most investors require growth returns to meet their long-term financial objectives.
They currently consider equity mutual funds because equities have a historical record of providing much higher average returns. Avoid most of the downside and participate in most of the upside. In truth, many investors effectively manage to lose at a winning game. A controlled-risk, defensive investment style is the best solution for people who don't have much tolerance for financial pain. We are in that business.