Long-term mutual fund investments can weather economic uncertainty when planning for retirement, according to two SUNY Canton faculty members’ latest research.
“You might win big by dropping a mutual fund and reinvesting, but you also might lose everything,” said Professor Brian K. Harte, Ph.D. “Long term investments or lifecycle funds aren’t as much of a gamble.”
Harte and Assistant Professor Umesh Kumar recently received Best Paper in Accounting and Economics at the Academy of Business Research Fall Conference. Their jointly authored paper, “Analyzing Mutual Funds of Various Target Dates for Retirement,” analyzes the performances of long-term investments based on more than 1,000 target date mutual funds from 2010 to 2060.
“Many people plan for retirement based on a specific date,” Harte said. “Our research indicates that individuals stand to earn more by leaving their money in mutual funds until that date rather than trying to reinvest as a means to manage economic downturns.”
Some may see their mutual fund value fall during a recession, but should still leave their investment alone, according to the researchers.
“Funds invested through financial institutions tend to perform better than other riskier ventures,” Kumar said. “Investments are moved to more conservative assets as the funds mature, removing more uncertainty than other schemes.”
Harte teaches in the college’s Criminal Justice program and Kumar teaches in the Finance program. Together, they have now won four awards for their business-related research and publications. Three of their awards have been from the Academy of Business Research, an international society of scholars and practitioners who exchange ideas and collaborate in a conference setting.
About SUNY Canton
SUNY Canton is Northern New York’s premier college for career-driven bachelor’s degrees, associate degrees and certificate programs. The college delivers quality hands-on programs in engineering technology, health, management and public service. Faculty members are noted for their professional real-world experience in addition to outstanding academic credentials. SUNY Canton OnLine offers hundreds of flexible and convenient courses as well as 10 exclusively online bachelor’s degrees. The college’s 14 athletic teams compete as members of the NCAA Division III.