Mutual fund performance, management behavior, and investor costs

Authors

  • Richard J. Dowen Department of Finance, Northern Illinois University
  • Thomas Mann Lynchburg College, Lynchburg VA

DOI:

https://doi.org/10.61190/fsr.v13i1.4783

Keywords:

Potential capital gains exposure, Prospectus objective, Mutual funds

Abstract

We examine pure no-load funds over a 5-year period. For equity funds, trading activity 1s negatively related to returns. Expense ratios are not significantly related to returns. Potential capital gains exposure and tax cost ratio arc positively related to return. For fixed income funds, trading activity is positively related to return. Expense ratios and tax cost ratios are negatively related to returns. Mutual funds exhibit economies of scale and managers experience scale and scope economics. The individual investor is better off in a large fund that is a member of a large fund family.

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Published

2004-03-30

Issue

Vol. 13 No. 1 (2004): FSR Spring 2004

Section

New Original Submission

License

Copyright (c) 2004 Academy of Financial Services

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How to Cite

Mutual fund performance, management behavior, and investor costs. (2004). Financial Services Review, 13(1), 79-91. https://doi.org/10.61190/fsr.v13i1.4783