| Author: | Nanda, V. Narayanan, M.P. Warther, V.A. |
| Title: | Liquidity, investment ability, and mutual fund structure |
| Journal: | Journal of Financial Economics
2000 : SEP, VOL. 57:3, p. 417-443 |
| Index terms: | Stock markets Liquidity Models |
| Freeterms: | Mutual funds |
| Language: | eng |
| Abstract: | This paper develops a model of the mutual fund industry in which the management fees and loads charged by actively managed open-end funds and average fund returns are determined endogenously in a competitive market setting. It is shown among others that heterogeneity in managerial skills at investing and minimizing costs, and the existence of investor clienteles with differing liquidity and marketing needs, gives rise to a variety of open-end fund structures that differ in the average return delivered to investors. |
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