Ranking Mutual Fund Families: Minimum Expenses and Maximum Loads as Markers for Moral Turpitude

44 Pages Posted: 11 Sep 2008

See all articles by Edward Tower

Edward Tower

Duke University - Department of Economics; Chulalongkorn University-Economics Department

Wei Zheng

affiliation not provided to SSRN

Date Written: September 2, 2008

Abstract

We evaluate the performance of 51 mutual fund families based on a study of their diversified US managed mutual funds over an 11 year period and explore the determinants of performance gross of published expenses. We find that mutual fund families which charge loads, high expenses to their most favored investors and have high turnover tend to perform badly, even gross of these fees. However, gross of published expenses, managed mutual fund portfolios of those families without loads, with low expenses in their least expensive class, and with low average turnover beat the corresponding indexes.

Keywords: Mutual fund families, Performance, Turnover, Expense ratio, Loads

JEL Classification: G10, G11, G20

Suggested Citation

Tower, Edward and Zheng, Wei, Ranking Mutual Fund Families: Minimum Expenses and Maximum Loads as Markers for Moral Turpitude (September 2, 2008). Economic Research Initiatives at Duke (ERID) Working Paper No. 8, Available at SSRN: https://ssrn.com/abstract=1265103 or http://dx.doi.org/10.2139/ssrn.1265103

Edward Tower (Contact Author)

Duke University - Department of Economics ( email )

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Chulalongkorn University-Economics Department

Bangkok
Thailand

Wei Zheng

affiliation not provided to SSRN ( email )

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