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DALBAR's Latest Research Findings on Investor Behavior

DALBAR has published the latest edition of its acclaimed Quantitative Analysis of Investor Behavior – Variable Annuities (QAIB-VA) report, which provides an in-depth look at how investor actions influenced returns in the variable annuity sector during 2024. This pivotal study is essential not only for financial professionals but also for investors looking to understand the dynamics of variable annuities in the broader market context.

Key Insights from the Report

In the recently released QAIB-VA report, several noteworthy findings have emerged:

• - Performance Comparison: The report reveals that the average equity subaccount investor earned a remarkable 19.60% return in 2024. This places them significantly ahead of the average equity mutual fund investor, who reported a gain of 16.54%. The difference in performance between these two investor types stands at 3.06%, highlighting the advantages of variable annuities in terms of returns.
• - Retention Rates: Not only did variable annuity investors outshine their mutual fund counterparts in terms of returns, but they also enjoyed higher retention rates. The average retention for equity subaccount investors was 5.23 years, compared to 4.79 years for those invested in equity mutual funds. This indicates a greater commitment and satisfaction among variable annuity investors, which is an important factor for financial professionals to consider.

DALBAR's Expertise

DALBAR has established itself as a credible source in the financial services industry over its 49-year history. The organization is recognized by both industry leaders and government regulators as an independent authority on audits, evaluations, ratings, and due diligence within financial services. They offer their certified ratings as a benchmark for excellence, ensuring that both financial institutions and investors benefit from reliable and impartial analysis.

In today's complex investment environment, understanding behavior can provide a substantial advantage. The insights drawn from DALBAR's Behavioral Analysis not only demonstrate the advantages of variable annuities but also serve as critical information for investors and financial professionals looking to enhance their strategies.

To explore the report in further detail and access all of its findings, visit their official website at www.qaib.com.

The implications of this research are vast—financial advisors can leverage these findings to better tailor their advice and help clients make informed decisions based on historical performance and investor behavior. The emotional aspect of investing is often underestimated, but this report reaffirms that understanding investor behavior is vital for long-term success.

In conclusion, DALBAR’s latest report lays bare the benefits that variable annuity investors are experiencing and offers rich insights rooted in data-driven analysis. With performance metrics and retention rates favoring variable annuities, it is clear that these financial products will continue to grow in popularity among discerning investors.

Media Contact:
Emily Kunka
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