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Fund managers aren't bad at picking stocks, but they're terrible at this

Fund managers consistently fail at market timing despite claiming expertise, reveals the largest global study of mutual fund performance. While stock picking skills vary by country, timing abilities are universally poor across 21,000 funds in 35 nations. New research challenges industry claims about professional investment skills and fee justification.

TEBI

Photo of British £20 banknotes burning in flames symbolising wealth destruction and financial loss

Why chasing yesterday’s winners is tomorrow’s wealth destroyer

Chasing yesterday’s winners may feel safe, but it’s one of the fastest ways to destroy wealth. Funds that shine in headlines often disappoint once investors pile in, leaving latecomers with losses. Morningstar’s research shows how chasing past performance turns success stories into financial traps — and why boring, low-cost investing offers the real path to long-term wealth preservation.

Robin Powell

6 days ago9 min read

Hot funds look great — until they're not

Hot funds often attract a rush of investor cash. But new research shows they’re more likely to underperform once they’ve hit peak popularity. Here’s why chasing recent winners could leave you trailing the market.