Death, Taxes, and Short-Term Underperformance: Fixed Income Funds

7 Pages Posted: 20 Jun 2008

Multiple version iconThere are 2 versions of this paper

Date Written: September 1, 2007


In our initial Death, Taxes, and Short-Term Underperformance equity studies, we established that short-term underperformance may be unavoidable, even when investing in top-performing equity funds. In this article, we find strikingly similar results among fixed income funds. Given bond investors' loss-averse predisposition, weathering stretches of short-term underperformance may have proved challenging, even when investing in fixed income funds that delivered favorable long-term performance. (Note: This article has been filed with FINRA)

Keywords: death, taxes, fixed income, bonds, mutual funds, performance, investors, investment, fixed income funds

Suggested Citation

Institute, Brandes, Death, Taxes, and Short-Term Underperformance: Fixed Income Funds (September 1, 2007). Brandes Institute Research Paper No. 2007-06. Available at SSRN: or

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