Behaviour gap
Risk & psychologyThe shortfall between a fund’s return and what its investors actually earned.
In plain terms
One to three points a year, caused by money arriving after good years and leaving after bad ones.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 1 term
The shortfall between a fund’s return and what its investors actually earned.
One to three points a year, caused by money arriving after good years and leaving after bad ones.