Investors often choose funds based on past returns, but high returns don't always mean a good investment. A study looked at how fund managers and investors interact. They found that investors tend to pick funds with returns in a certain range, not too high or too low. Skilled managers choose safer investments, while less skilled ones take bigger risks hoping for luck. Both types of managers often use the same fee structure. This explains why top-performing funds don't always stay on top, and why many funds charge fees based on a fraction of the total investment.