Fund firms seeking to have the most satisfied shareholders may want to hunt down ways to help them time their purchases better. Research by Morningstar shows that investors are good at picking mutual funds, but their investing timing is bad, reported Jason Kephart for Investment News.

Russel Kinnel, Morningstar's mutual fund research director, said in an interview that "investors know how to pick good funds, but good funds can't overcome bad allocation."

Scott Burns, the research firm's North America fund analysis director, added:

"When we look at fund flows, we see massive evidence of bad behavior, like selling stocks to buy bonds in March 2009."

Kephart writes that allocation of assets will be more important as the baby boomers move closer to retirement. But Don Phillipps, fund research president said "bonds can't do all the heavy lifting." 

Edited by: HFD


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