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Stock impact report

This Common Blunder Will Cost You $2,300 On Every $10,000 You Invest [Forbes]

Liberty All-Star Growth Fund, Inc. (ASG) 
US:NYSE Investor Relations: all-starfunds.com
Company Research Source: Forbes
And if you're investing for income (as we are!), you face a double hit. Not only do investors almost always get the timing wrong, but they cut off their income stream , too! When you're holding our favorite income plays, closed-end funds (CEFs) yielding 8%+, it's especially damaging. I mention this now because I was reading a recent report from Morningstar that put the potential damage from this mistake into dollars and cents. This chart shows that, over the last decade, investors' return was 1.2 percentage points lower per year than the average return of US mutual funds and ETFs (you can see that gap captured in red on the right). It means the average US investor missed out on $2,300 per every $10,000 invested. And bear in mind that the average S&P 500 index fund yields just 1.1%! Factor in the typical 8%+ payout on a CEF, and the potentially missed returns would run higher. Why are these folks missing out? Quite simply, they're trading too much. And while the study doesn' Show less Read more
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