Why is investors’ mutual fund market allocation far from the optimum?

• Autores: Ricardo Laborda Herrero, Ramiro Losada
• Localización: Documentos de trabajo ( CNMV ), ISSN 2172-6337, Nº. 65 (enero), 2017, págs. 1-42
• Idioma: inglés
• Enlaces
  • Texto completo (pdf)
• Resumen

  • We analyse the differences between the optimal portfolio of funds that a fully informed 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 portfolio of funds depends on the structure of the mutual fund market.