Have Higher Management Fees Resulted in Higher Returns for Mutual Fund Investors?

Posted: 12 Dec 2011

See all articles by Jan Schembri

Jan Schembri

affiliation not provided to SSRN

Date Written: December 11, 2011

Abstract

This paper seeks to study whether mutual funds charging higher management fees have produced better returns for their investors by using monthly performance data for the period 2008 to 2010 for a sample of thirty actively managed open-ended US-based international equity funds. The results indicate that returns of funds included in the sample are positively related to management fees, controlling for investment category, size, turnover and risk. On the other hand, however, management fees do not seem to be related to market timing ability.

Keywords: mutual funds, investment, return, management fees, market timing, equity, funds, fund manager

Suggested Citation

Schembri, Jan, Have Higher Management Fees Resulted in Higher Returns for Mutual Fund Investors? (December 11, 2011). Available at SSRN: https://ssrn.com/abstract=1970932 or http://dx.doi.org/10.2139/ssrn.1970932

Jan Schembri (Contact Author)

affiliation not provided to SSRN ( email )

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