.png){kind=icon}
.png){kind=icon}
Return
Fund tradeoffs
.png){kind=icon}
PRE
AI
DOI：10.1016/j.jfineco.2020.06.005.png)
.png){kind=icon}
Original request for help.png){kind=icon}
Share.png){kind=icon}
Save
Abstract
En 中文
We study tradeoffs among active mutual funds' characteristics. In both our equilibrium model and the data, funds with larger size, lower expense ratio, and higher turnover hold more-liquid portfolios. Portfolio liquidity, a concept introduced here, depends not only on the liquidity of the portfolio's holdings but also on the portfolio's diversification. We also confirm other model-predicted tradeoffs. Larger funds are cheaper. Larger and cheaper funds are less active, based on our new measure of activeness. Better-diversified funds hold less-liquid stocks; they are also larger and cheaper, and they trade more. These tradeoffs provide novel evidence of diseconomies of scale in active management. (C) 2020 Elsevier B.V. All rights reserved.
Keywords:
Fund tradeoffs
Fund characteristics
Portfolio liquidity
Diversification
AI Summary
Key information extracted from the uploaded paper, including a brief overview, abstract, background, key highlights, visual analysis, and future outlook.
Journal
IF:
12
Papers:
3.8K
Citations:
5.5W