In Brief: Mar. 12, 2001

STAYING POWER The grass is always greener in the other mutual fund, and investors are jumping funds 47% faster than they did four years ago. The average holding period is down from 5.5 years to 2.9. In the '90s, performance chasers poured $91 billion into funds after they peaked. Result: bad. Leapfroggers paid a 20% penalty in performance, says a recent study.

Cumulative returns in the '90s

1 year 2 year 3 year Average fund 11.7% 23.2% 36.5% Average investor 6.7% 14.7% 28.4%

Source: Financial Research Corp., based on 10 years' data

ARRIVAL TIME IS MONEY Amid last year's record flight...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!