Mutual Funds: Advertising, Behavioral Models, and Investor Choice
Journal of Index Investing, Vol. 1, No. 4, pp. 7-12, Spring 2011
6 Pages Posted: 27 Feb 2011 Last revised: 6 Mar 2017
Date Written: February 25, 2011
This article provides theories of advertising and investor behavior that apply to mutual fund advertising and investor fund choices. Mutual fund advertising and its effect on investor fund choices is assessed in context of the role of advertising, advertising as persuasion, investor choice, revealed preferences, affect as persuasion, and human behavior.
Among the more interesting findings is that highly educated and wealthy mutual fund investors as well as more financially savvy investors tend to make relatively poor fund choices.
Keywords: mutual funds, advertising, investor behavior, advertising as persuasion, investor choice, revealed preferences, affect as persuasion, human behavior
JEL Classification: G2, G23, G28
Suggested Citation: Suggested Citation