 Are the Highest Mutual Fund Fees Justified by Their Performance? (Czy wyniki tlumacza wysokosc op³at w najdrozszych funduszach inwestycyjnych?)Alicja Fras ()
Problemy Zarzadzania, 2018, vol. 16, issue 74, 62-73 Abstract: A mutual fund fee – being the price of a product – is related to the features of the product, like fund results, which are the base in the inves’s purchase decision making process. In the present study, we examine whether there is a relation between good performance of the fund in the past (1- and 5-year-time horizons) and the current fee. The research for the Polish open-ended mutual funds market in 2017 indicates that there is no clear linear or non-linear relation between past performance and current charges. The computations were conducted using fitting curves packages in the R programming language and a correlation analysis. In the second part of the article, the strategies of investing in the cheapest and the most expensive funds were compared, with a split into fund types (stock, mixed and bond funds). The overall conclusion is that performance is not a driver for imposing higher fees on the investors. If it is not, then either fee distribution among the funds is random or other non-fundamental factors matters. Keywords: mutual fund, fund fees, charges, fund performance. Keywords: mutual fund; fund fees; charges; fund performance (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sgm:pzwzuw:v:16:i:74:y:2018:p:62-73 Access Statistics for this article More articles in Problemy Zarzadzania from University of Warsaw, Faculty of Management Contact information at EDIRC. |
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