The Global Menu of Funds
52 Pages Posted: 9 Sep 2019 Last revised: 1 Apr 2020
Date Written: March 30, 2020
We analyze the names of over 39,000 equity mutual funds sold in 77 countries between 1931 and 2016 in order to provide an aggregate perspective on the global evolution of mutual fund offerings. Despite the previously documented high degree of fund proliferation, we find that country-level fund menus have retained a low dimensionality and progressively converged to a common (“global”) menu. We show that menu convergence is driven by incumbent firms that seem to employ fund proliferation as a strategy to congest the product space and deter market entry.
Keywords: Fund Families, Fund Proliferation, Entry Deterrence, International Markets
JEL Classification: G15, G23, L1
Suggested Citation: Suggested Citation