Coming Up Short

Mutual-fund investors' real results are often surprisingly poor.
• Over the past 10 years, owners of diversified U.S. stock funds collected 7.3% a year, less than their funds' 8.8% published return.

• In 19 stock markets, investors underperformed a buy-and-hold strategy by 1.5 percentage points a year since 1973.

• Over seven years, broker-sold stock funds lagged behind directly sold funds by half a percentage point a year after expenses.


Sources: Morningstar Inc.; academic studies