Weekend read from @jashkriplani. How investor returns differ from #mutualfund returns (from Morningstar study). First reaction from many of you would be, hain? What? Short answer: The study calculates loss from chasing performance and exiting early. More: livemint.com/market/market-… 
Returns since launch on MFs generally look very good. Take ABSL Frontline. Launched in 2002, its returns since inception are around 19%. It got really popular in 2016-17 and I expect a lot of investors would have entered it then - only to see underperformance in subsequent years
Morningstar tried to capture the 'collective experience' of investors via money flows in and out of funds. That's how it gives you 'investor return.' In technical terms it is Money Weighted Return. In most categories it is lower than fund return. Worst deviations in sector funds
Why do they occur? Because investors are bad at market timing. They enter after a fund's heyday and exit too early. The solution? Avoid churning funds unless you have very good reasons. Map your exits to financial goals. Going passive can also help.
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