Download or read book A Look at the Decision Making of Mutual Fund Families written by Jeffrey R. Stark and published by . This book was released on 2014 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt: I examine the motivations of mutual fund families when deciding what mutual funds to launch, when to launch them, and how they are going to be launched. I begin by analyzing the influence of investor preferences on the flow to open-end mutual funds by associating flow to a fund with the degree to which the fund has an in-favor or trendy name. Results show that funds which conform to market-wide trends generate significantly higher inflows compared to less trendy funds. In my third chapter I examine the decision to launch a fund and show that investment companies have motivation, in the absence of any investment ability, to launch a trendy fund. Launching a trendy fund is beneficial to the fund family, generating additional revenue through fee collection, but is potentially harmful to investors with trendy fund startups underperforming non-trendy fund startups by over 1% per year. My fourth chapter examines the process of mutual fund incubation and shows that funds generate greater inflows post-incubation as a result of investors' positive response to incubation period performance. However, incubation appears to be used for reasons beyond generating a track record of performance. Specifically, fund families are more likely to release underperforming incubated funds if they are struggling to attract inflows to a large objective class.
Download or read book The Essential Guide to the 100 Leading U S Mutual Fund Families written by Stephen A. Schoepke and published by Irwin Professional Publishing. This book was released on 1998-01-01 with total page 400 pages. Available in PDF, EPUB and Kindle. Book excerpt: An invaluable research tool for the serious investor searching for the right strategic portfolio mix, this totally unique funds industry reference provides a detailed "behind the scenes" look at the origins, principals, and histories of today's leading mutual fund families as well as many newer and/or lesser known ones. 100 illustrations.
Download or read book Entry Decisions by Mutual Fund Families written by Xinge Zhao and published by . This book was released on 2003 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: Due to the multiple-class structure of mutual funds, the entry decisions by fund families include two separate decisions: the introduction of new (single-class or multiple-class) portfolios and the introduction of new classes for existing portfolios. The two decisions are based on very different considerations and lead to very different class compositions. New classes in existing portfolios are primarily the results of the expansion of traditional front-end load funds and institutional funds, and are mostly introduced in star portfolios. No-load funds rarely introduce new load classes and no-load classes are never observed to be added to load funds. In addition, fund families starting new multiple-class portfolios appear to follow a very risky introduction strategy.
Download or read book The Importance of Family written by William Christopher Gerken and published by . This book was released on 2018 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the effect of investors' prior experience with mutual fund families on their subsequent investment decisions. Using a sample from a large discount broker, we find that investors are significantly more likely to purchase funds from families with which they have previous experience. Our results are consistent with the influence of family-level reputation and robust to alternative explanations such as service quality, fee discounts, marketing, blind loyalty, or inertia. Further consistent with reputation theories, individuals' beliefs about more reputable families appear to change slowly. After experience-based purchases, investors earn higher returns even controlling for investor ability and within-family correlation.
Download or read book Swing Pricing and Fragility in Open end Mutual Funds written by Dunhong Jin and published by International Monetary Fund. This book was released on 2019-11-01 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: How to prevent runs on open-end mutual funds? In recent years, markets have observed an innovation that changed the way open-end funds are priced. Alternative pricing rules (known as swing pricing) adjust funds’ net asset values to pass on funds’ trading costs to transacting shareholders. Using unique data on investor transactions in U.K. corporate bond funds, we show that swing pricing eliminates the first-mover advantage arising from the traditional pricing rule and significantly reduces redemptions during stress periods. The positive impact of alternative pricing rules on fund flows reverses in calm periods when costs associated with higher tracking error dominate the pricing effect.
Download or read book Purchase and Redemption Decisions of Mutual Fund Investors and the Role of Fund Families written by Stephan Jank and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Optimal Criteria for How to Determine If a Mutual Fund Is Worth Buying How to Strategically Invest As a Mutual Fund Investor and How to Make Substantial Money to Invest in Mutual Funds written by Harrison Sachs and published by . This book was released on 2020-02-26 with total page 65 pages. Available in PDF, EPUB and Kindle. Book excerpt: This essay sheds light on the utmost optimal criterion for how to determine if a mutual fund is worth buying and elucidates how to strategically invest as a mutual fund investor. Moreover, how to make substantial money so that you can afford to invest in the mutual fund market is delineated in this essay. Even though the criterion to determine if a mutual fund warrants purchasing is often eminently complex, it ultimately does not have to be and can be streamlined so that is parred down into asking some six basic questions. While strategic investor may be inclined to turn to reading financial statements, ascertain dividend percentage yields, compute financial ratios, such as the price to earnings ratio and the price to earnings growth ratio, there is far more that should be taken into account before making a purchasing decision of an income generating asset, such as an equity or mutual fund share. The six basic questions that an investor should ask before purchasing a mutual fund in order to determine if it merits owning encompass the following: 1. Does the mutual fund pay a dividend? 2. Do at least 95% the companies the mutual fund tracks consistently report positive net income? 3. Are the majority of the companies the mutual fund tracks competing in a market with high barriers to entry and/or minimal competition? 4. Are a preponderance of the companies the mutual fund tracks dominate the market as one of the leading competitors? 5. Do the majority of the companies the mutual fund tracks have a significantly lower stock price than similar market a competitor? 6. Are the majority of the companies the mutual fund tracks able to maintain profitability in the coming years if it does not innovate? If you can answer yes to all six of these aforementioned criterion questions then it is highly likely that the mutual fund is eminently undervalued. If you answered yes to five out of six of the criterion questions it is still likely that the mutual fund is undervalued. However, if you answered yes to at most four out of six of the questions then the mutual fund is far more likely to be overvalued and therefore would not warrant a purchase for the more conservative investor. As per the first criterion question, it is critical for mutual funds to offer a dividend to their investors. The dividend not only renders the mutual fund an income generating asset, but also vindicates to investors that the investment management company has confidence in their investment shrewdness to warrant doling out dividend payments. In other words, it not only renders the mutual fund more valuable as an income generating asset that is not procured based purely off speculation for the prospect of earning a capital gain, but also allows investment management firms to win over the trust of investors and raise more investment money. In other words, the merits of the mutual fund are dubious if the investment management company does not have the confidence to offer a dividend to their mutual fund investors. Some investors completely abstain from ever buy non-dividend paying assets. As per the second criterion question, it is important for the majority of the companies the mutual fund tracks to consistently report earning positive net income annually. Companies should be able to efficaciously manage their resources and streamline and refine their business model to remain profitable in the digital era. When companies report earning negative net income, it is a clear tell-tale sign of under-performance and underlying financial issues. In the digital era, it can be a hardship to recover from insolvency, operational inefficiencies, mismanagement of resources, and the continual usage of an unprofitable business model. It is incumbent that companies are managed effectively and are not encumbered by debt and lack of positive cash flow. The majority of the companies the mutual fund tracks should not be unprofitable and lagging behind their competitors.
Download or read book Effect of Peer Competition in Fund Families on Mutual Fund Exit Decisions written by and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Bogle On Mutual Funds written by John C. Bogle and published by John Wiley & Sons. This book was released on 2015-04-10 with total page 375 pages. Available in PDF, EPUB and Kindle. Book excerpt: The seminal work on mutual funds investing is now a Wiley Investment Classic Certain books have redefined the way we view the world of finance and investing—books that should be on every investor’s shelf. Bogle On Mutual Funds—the definitive work on mutual fund investing by one of finance’s great luminaries—is just such a work, and has been added to the catalog of Wiley’s Investment Classic collection. Updated with a new introduction by expert John Bogle, this comprehensive book provides investors with the wisdom of the pioneer of mutual funds to help you identify and execute the ideal mutual fund investment choices for your portfolio. The former Vanguard Chief Executive, Bogle has long been mutual funds' most outspoken critic; in this classic book, he provides guidance on what you should and shouldn't believe when it comes to mutual funds, along with the story of persistence and perseverance that led to this seminal work. You'll learn the differences between common stock, bond, money market, and balanced funds, and why a passively managed "index" fund is a smarter investment than a fund managed by someone making weighted bets on individual securities, sectors, and the economy. Bogle reveals the truth behind the advertising, the mediocre performance, and selfishness, and highlights the common mistakes many investors make. Consider the risks and rewards of investing in mutual funds Learn how to choose between the four basic types of funds Choose the lower-cost, more reliable investment structure See through misleading advertising, and watch out for pitfalls Take a look into this timeless classic and let Bogle On Mutual Funds show you how to invest in mutual funds the right way, with the expert perspective of an industry leader.
Download or read book Macro Attractiveness and Micro Decisions in the Mutual Fund Industry written by Gunnar Lang and published by Springer Science & Business Media. This book was released on 2013-10-11 with total page 185 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume addresses the attractiveness of financial centers with a primary focus on the mutual fund industry. It uses different empirical analysis approaches in an attempt to disentangle the reasons for location attractiveness and in order to identify its influence on fund pricing. The presented research tackles an issue that is fundamental to the understanding of organizational behavior in finance – the rationale in the decision-making process of market participants and its consequences for an economy.
Download or read book The Mutual Fund Business written by Robert C. Pozen and published by South-Western College. This book was released on 2002 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Pozen, a leading industry expert, offers a structured presentation of mutual funds for upper-level undergraduates and MBA students. The Mutual Fund Business, 2/e, covers the key principles of mutual fund investment theory through straightforward writing supported by selected articles and case studies. This text provides a comprehensive, firsthand look at the investment strategies supporting a $4 trillion industry undergoing significant growth in the U.S.
Download or read book Mutual Funds written by John A. Haslem and published by John Wiley & Sons. This book was released on 2009-10-08 with total page 384 pages. Available in PDF, EPUB and Kindle. Book excerpt: An authoritative, must-read guide to making more informed decisions about mutual funds Providing a balance of theory and application, this authoritative book will enable you to evaluate the various performance and risk attributes of mutual funds. It covers a broad range of topics, including understanding the advantages and disadvantages of mutual funds, evaluating stock/bond allocations within fund portfolios, assessing fund diversification risk, measuring fund returns and risk, and making fund buy/sell decisions. While informative chapters combine clear summaries of existing research with practical guidelines for mutual fund analysis, step-by-step decision checklists guide you through the selection of various mutual funds. Puts the risks and rewards of mutual fund investing in perspective Skillfully examines how to select and evaluate the best mutual funds Outlines mutual fund service advantages and disadvantages Discusses the long- and short-term effectiveness of mutual funds Covering major theoretical and management issues in mutual fund analysis and portfolio management, this book is an authoritative guide.
Download or read book The Naked Portfolio Manager written by J. Robert Fischer and published by Greenleaf Book Group. This book was released on 2009-10 with total page 178 pages. Available in PDF, EPUB and Kindle. Book excerpt: Traditionally, investment portfolios are managed by people with years of experience who graduated from the best schools. We are told they have nearly mystical ways of forecasting stock prices that we ordinary investors wouldn't understand. However, now there is a small but growing number of managers who reject the traditional "you-wouldn't-understand" approach. Instead, they are completely open and transparent about the process they apply to make investment decisions. These are the "Naked Portfolio Managers."When you've had enough of other methods that are being used to manage your portfolio, The Naked Portfolio Manager can help. By understanding the disciplined rule-based decision-making methodologies based on Statistical Prediction Methods (SPMs), you can transform the way you make investment decisions.The Naked Portfolio Manager makes the case for a new approach to investment decision making.bull; it discusses the hard facts about the performance of the highest paid portfolio managers in the business. (Brace yourself, it sounds a lot like the emperor is wearing no clothes.) bull; it presents a fascinating examination of how decisions are made, with actual case studies bull; it explains, with clear examples, how Statistical Prediction Methods are created and how they can be put to work with your portfolio.So, if you are ready to take an objective look at how your portfolio is being handled, with an eye to considering new, more effective ways to approach managing your investments or having them managed for you, The Naked Portfolio Manager will expand your horizons and lead you in a direction you may never have considered before.
Download or read book Mutual Funds written by John Haslem and published by John Wiley & Sons. This book was released on 2009-02-09 with total page 592 pages. Available in PDF, EPUB and Kindle. Book excerpt: This authoritative book enables readers to evaluate the variousperformance and risk attributes of mutual funds, while also servingas a comprehensive resource for students, academics, and generalinvestors alike. Avoiding the less useful descriptive approach tofund selection, this book employs a balanced approach includingboth technique and application. The chapters combine clearsummaries of existing research with practical guidelines for mutualfund analysis. Enables readers to analyze mutual funds by evaluating a fund'svarious performance and risk attributes. Includes templates, which provide an efficient, sound approachto fund analysis, interpretation of results, buy/sell decisions,and the timing of decisions. Combines clear summaries of existing research with practicalguidelines for mutual fund analysis.
Download or read book Investment Company Act Release written by United States. Securities and Exchange Commission and published by . This book was released on 1967 with total page 974 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book What Investors Really Want Know What Drives Investor Behavior and Make Smarter Financial Decisions written by Meir Statman and published by McGraw Hill Professional. This book was released on 2010-11-19 with total page 305 pages. Available in PDF, EPUB and Kindle. Book excerpt: A pioneer in the field of behavioral finance presents an investment guide based on what really drives investors Perfectly timed to give readers a real edge for investing in post-crash markets Author is a leading authority on the theory and application of behavioral finance and a fixture in The Wall Street Journal and other leading media outlets Poised to become the definitive text on how investors and managers make financial decisions—and how these decisions are reflected in financial markets
Download or read book Handbook of Financial Decision Making written by Gilles Hilary and published by Edward Elgar Publishing. This book was released on 2023-08-14 with total page 463 pages. Available in PDF, EPUB and Kindle. Book excerpt: This accessible Handbook provides an essential entry point for those with an interest in the increasingly complex subject of financial decision making. It sheds light on new paradigms in society and the ways that new tools from private actors have affected financial decision making. Covering a broad range of key topics in the area, leading researchers summarize the state-of-the-art in their respective areas of expertise, delineating their projections for the future.
