Are mutual fund investors in jail?

• Autores: Carlos Francisco Alves, Victor Mendes
• Localización: Applied financial economics, ISSN 0960-3107, Vol. 17, Nº. 16-18, 2007, págs. 1301-1312
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • The absence of investor reaction to the poor performance of mutual funds is a widely reported phenomenon. This article investigates the role of load costs as an explanation for the phenomenon and concludes that back-end load fees are an obstacle to reaction. We found evidence consistent with the hypothesis that medium and long-term investors do not react to poor performances due to the fact that they are 'imprisoned' by back-end load fees.