Anmerkungen:
In: Journal of Economics and Business, Forthcoming
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 5, 2019 erstellt
Beschreibung:
Previous research has shown that fund performance is reduced by higher expense ratios but improved by more active management. Using data for equity mutual funds from 1991-2012, we show that prior studies has overlooked the fact that a high degree of active management magnifies the extremes of performance. In addition, funds with higher expense ratios and turnover ratio have had greater volatility of performance as well as lower mean performance, a doubly adverse pattern. Thus, mutual funds with more active management, higher expense ratios and turnover ratios are riskier