Are Mutual Fund Fees Competitive? What IQ-Related Behavior Tells Us
33 Pages Posted: 17 Mar 2008
Date Written: November 18, 2007
This study analyzes the fees of mutual funds and the choices of mutual fund investors. Using a comprehensive dataset on males in two Finnish provinces, we find that the fees of funds selected by high IQ investors are not significantly lower than the fees of funds selected by low IQ investors. This conclusion controls for a variety of fund and individual attributes that explain mutual fund fees and mutual fund choices. This suggests that fees are set competitively in the fund industry.
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