Investors Beware: Attention-driven fund purchases lead to lower returns and survival rates.
Investors who search online for new funds often make attention-driven purchases, but these investors are less likely to earn high returns. New funds that attract attention online may receive more investments, but this doesn't always lead to better performance. However, these attention-induced inflows can help new funds survive in competitive markets. Older funds don't benefit as much from attention-driven investments.