Convenience in the mutual fund industry

George D. Cashman

Journal of Corporate Finance, 2012, vol. 18, issue 5, 1326-1336

Abstract: I examine the role of convenience in the mutual fund industry. I find that investors pay more for relatively convenient funds, and that the flows to convenient funds are less responsive to performance. These findings suggest that investors do not evaluate mutual funds independently, but rather that investors select a primary fund, likely based on beliefs about managerial ability, and then select funds which are relatively convenient to this primary fund.

Keywords: Mutual funds; Sub-advising; Performance-flow relation (search for similar items in EconPapers)
JEL-codes: G11 G23 L1 L14 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:18:y:2012:i:5:p:1326-1336

DOI: 10.1016/j.jcorpfin.2012.09.003

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