Average Funds versus Average Dollars: Implications for Mutual Fund Research

32 Pages Posted: 6 Aug 2011 Last revised: 10 Apr 2014

See all articles by Christopher P. Clifford

Christopher P. Clifford

University of Kentucky

Bradford D. Jordan

University of Florida; University of Florida - Department of Finance, Insurance and Real Estate

Timothy B. Riley

University of Arkansas - Department of Finance

Date Written: April 9, 2014

Abstract

The top 5 percent of actively managed U.S. equity mutual funds in 2012 had greater aggregate TNA than the remaining 95 percent of funds combined. This skewness in size has implications for mutual fund research: What is true of the average fund is not necessarily true of the average dollar. We explore several key findings in the literature with an eye on this distinction. Our results indicate that if the goal of mutual fund research is to understand the importance of the industry to investors, then researchers should consider the experience of the average dollar, rather than the average fund.

Keywords: Mutual funds

JEL Classification: G20, G23, G29

Suggested Citation

Clifford, Christopher P. and Jordan, Bradford D. and Riley, Timothy Brandon, Average Funds versus Average Dollars: Implications for Mutual Fund Research (April 9, 2014). Available at SSRN: https://ssrn.com/abstract=1905686 or http://dx.doi.org/10.2139/ssrn.1905686

Christopher P. Clifford (Contact Author)

University of Kentucky ( email )

College of Business & Economics
Lexington, KY 40506-0034
United States
859-257-3850 (Phone)

Bradford D. Jordan

University of Florida ( email )

Gainesilee, FL 40506
United States

University of Florida - Department of Finance, Insurance and Real Estate ( email )

P.O. Box 117168
Gainesville, FL 32611
United States

Timothy Brandon Riley

University of Arkansas - Department of Finance ( email )

Fayetteville, AR 72701
United States

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