Download This PaperWhy Is Investors' Mutual Fund Market Allocation Far from the Optimum?
42 Pages Posted: 10 Jun 2019
Date Written: 2017
Abstract
We analyse the differences between the optimal portfolio of funds that a fully in-formed investor might select and the current structure of the mutual fund markets as characterized by the funds’ risk profile (conservative or aggressive) and target investor type (retail or wholesale). We find that the relationship between fund age, market share and change in total net assets – but not fees – and the optimal portfo-lio of funds depends on the structure of the mutual fund market.
Keywords: optimal portfolio of funds, fund characteristics, risk profile, retail, friction
JEL Classification: G11, G19
Suggested Citation: Suggested Citation
Laborda Herrero, Ricardo and Losada, Ramiro, Why Is Investors' Mutual Fund Market Allocation Far from the Optimum? (2017). CNMV Working Paper No. 65 (2017), Available at SSRN: https://ssrn.com/abstract=3401676 or http://dx.doi.org/10.2139/ssrn.3401676
Do you have a job opening that you would like to promote on SSRN?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.