Financial advisors and multiple share class mutual funds

Authors

  • Michael A. Jones Department of Marketing, University of Tennessee-Chattanooga
  • Vance P. Lesseig Department of Finance and Economics, Texas State University-San Marcos
  • Thomas I. Smythe Department of Business and Accounting, Furman University

DOI:

https://doi.org/10.61190/fsr.v14i1.4810

Keywords:

Financial advisors, Multiple share class mutual funds

Abstract

The development of multiple share class mutual funds has complicated the investment decision for individual investors such that the advice of financial advisors is heavily relied upon to make the best choice. However, there have been accusations that advisors are influenced by factors other than the client's best interests. This study surveys financial advisors as to their compensation and recommen­ dations with respect to multiple share class funds. Our results suggest that advisors may not be sufficiently informed regarding the relationship between share classes, investment size, and invest­ment horizon. We also find that advisor compensation appears to influence the frequency of sales of various share classes.

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Published

2005-03-31

Issue

Vol. 14 No. 1 (2005): FSR Spring 2005

Section

New Original Submission

License

Copyright (c) 2005 Academy of Financial Services

Creative Commons License

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Author(s) retain copyright and grant the Journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial 4.0 International License that allows to share the work with an acknowledgment of the work's authorship and initial publication in this Journal.

This license allows the author to remix, tweak, and build upon the original work non-commercially. The new work(s) must be non-commercial and acknowledge the original work.

How to Cite

Financial advisors and multiple share class mutual funds. (2005). Financial Services Review, 14(1), 1-20. https://doi.org/10.61190/fsr.v14i1.4810