.png){kind=icon}
.png){kind=icon}
Return
Money Doctors
.png){kind=icon}
PRE
AI
DOI：10.1111/jofi.12188.png)
.png){kind=icon}
Original request for help.png){kind=icon}
Share.png){kind=icon}
Save
Abstract
En 中文
We present a new model of investors delegating portfolio management to professionals based on trust. Trust in the manager reduces an investor's perception of the riskiness of a given investment, and allows managers to charge fees. Money managers compete for investor funds by setting fees, but because of trust, fees do not fall to costs. In equilibrium, fees are higher for assets with higher expected return, managers on average underperform the market net of fees, but investors nevertheless prefer to hire managers to investing on their own. When investors hold biased expectations, trust causes managers to pander to investor beliefs.
Keywords:
MUTUAL FUND INDUSTRY
FINANCIAL ADVICE
CAREER CONCERNS
STOCK-MARKET
RETURNS
PERFORMANCE
PRICE
INVESTMENT
COSTS
COMPETITION
AI Summary
Key information extracted from the uploaded paper, including a brief overview, abstract, background, key highlights, visual analysis, and future outlook.
Journal
IF:
9.5
Papers:
4.0K
Citations:
5.0W
View more organizations