Why do mutual fund shareholders react calmly?
ICI research indicates that fund shareholders typically are experienced investors with long-term investment objectives, such as retirement. Most fund shareholders made their first fund investment more than a decade ago. Fund investors tend to take periods of volatility in stride. ICI research finds that the “typical” shareholder is middle aged, employed with moderate household income, suggesting that retirement is still years in the future. Fund owners consistently indicate that they are not concerned with short-term market fluctuations.
