Without a doubt, this is the dumbest mistake investors keep making | Buying high, selling low

This is an automatic summary, original reduced by 81%.

An investor return differs from a fund's total return in that the total return assumes a buy-and-hold approach.

An investor return, sometimes called a dollar-weighted return, accounts for cash flows into and out of a fund, and evaluates how much of the fund's return the average dollar invested in the fund has extracted.

If a fund's investor return is less than the total return, fewer dollars participated in the fund's upswing and more participated in the downswing.

This can happen because investors have sold a fund near its lows, leaving fewer dollars in the fund to take advantage of the upside, and bought it near its highs, pushing more dollars into the fund to inadvertently capture its downside.

Morningstar's data shows investors in diversified U.S.-stock funds have missed nearly 1.8 percentage points of the funds' annualized total returns over the past decade because of bad trading.

The gap over the past 15 years is negative 1.6 percentage points, implying investors are getting worse at timing their trades.

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