Do “financial experts” perform better at stock portfolio selection and management than non-experts coming from a similar demographic and educational background?
No, is the result of a study from Notre Dame and Michigan State researchers.
Sweden's financial experts did not outperform individual investors
Researchers found that a group of mutual fund managers in Sweden – the “financial experts” – did not outperform a group of individual investors, did not diversify their risk better and did not exhibit a lower level of behavioral bias. The mutual fund managers did outperform when the had an informational advantage over the non-financial experts, such as investing in stocks in which the mutual fund had invested and conducted in-depth research.
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full Article
