“Based on DALBAR studies covering 1990–2019, the average equity investor significantly lagged behind the market, achieving only a ~5% annualized return, while the S&P 500 returned nearly 10%. This underperformance was primarily driven by investor behavior, such as panic selling and chasing returns during the 1990s tech boom”
Directly from the internet. Average investor makes mistakes that cost them farrrrr more than a 1% AUM fee. Not to mention most advisors assess breakpoints to drop the fee below 1% anyways. This is an outdated take.