Determinants of cost efficiencies in the mutual fund industry

D.K. Malhotra, Rand Martin and Philip Russel

Review of Financial Economics, 2007, vol. 16, issue 4, 323-334

Abstract: We evaluate determinants of cost efficiencies in the U.S. mutual fund industry for 1998–2003. Our empirical results show that cost increases in this industry have been less than proportional to increases in assets. We find that funds without a 12b‐1 plan show larger economies of scale than funds with a 12b‐1 plan; institutional funds show greater economies of scale than do retail funds; and that fund families that are more focused in their investment objectives reap benefits of lower fund management costs than do fund families that are more diversified in their investment objectives.

Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1016/j.rfe.2006.08.002

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:revfec:v:16:y:2007:i:4:p:323-334

Access Statistics for this article

More articles in Review of Financial Economics from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().