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Pricing of Mutual Fund Services in Retirement Plans: Evidence from Open-End Equity Funds

Pricing of Mutual Fund Services in Retirement Plans: Evidence from Open-End Equity Funds Abstract Management fees of mutual funds are more costly to investors than is often realized. Moreover, research indicates that in many cases, the fees are not related to performance, contrary to what might be expected from an efficient market. This study uses sample data to illustrate the consequences of inefficiency to an individual investor. It then turns to an empirical examination of the determinants of the ratio of management fees to total assets (MER), investigating market concentration, fund performance, and non-performance characteristics as explanatory variables. All of these classes of variables contributed to the variation of MERs. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Business Economics Springer Journals

Pricing of Mutual Fund Services in Retirement Plans: Evidence from Open-End Equity Funds

De Rooy, Jacob
Business Economics , Volume 41 (4): 10 – Oct 1, 2006
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Publisher
Springer Journals
Copyright
2006 National Association for Business Economics
ISSN
0007-666X
eISSN
1554-432X
DOI
10.2145/20060404
Publisher site
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Abstract

Abstract Management fees of mutual funds are more costly to investors than is often realized. Moreover, research indicates that in many cases, the fees are not related to performance, contrary to what might be expected from an efficient market. This study uses sample data to illustrate the consequences of inefficiency to an individual investor. It then turns to an empirical examination of the determinants of the ratio of management fees to total assets (MER), investigating market concentration, fund performance, and non-performance characteristics as explanatory variables. All of these classes of variables contributed to the variation of MERs.

Journal

Business Economics – Springer Journals

Published: Oct 1, 2006

Keywords: economics, general; political economy/economic systems; business and management, general

There are no references for this article.