The Impact of Mutual Fund Family Membership on Investor Risk

CFA Digest ◽  
2007 ◽  
Vol 37 (4) ◽  
pp. 87-88
Author(s):  
Charles F. Peake
Keyword(s):  
Mutual Fund ◽  
Mutual Fund Family ◽  
The Impact ◽  
Family Membership

scholarly journals The Impact of Mutual Fund Family Membership on Investor Risk

2005 ◽  
Author(s):  
Edwin J. Elton ◽  
T. Clifton Green ◽  
Martin J. Gruber
Keyword(s):  
Mutual Fund ◽  
Mutual Fund Family ◽  
The Impact ◽  
Family Membership

scholarly journals The Impact of Mutual Fund Family Membership on Investor Risk

2007 ◽  
Vol 42 (2) ◽  
pp. 257-277 ◽  
Author(s):  
Edwin J. Elton ◽  
Martin J. Gruber ◽  
T. Clifton Green
Keyword(s):  
Mutual Fund ◽  
Retirement Savings ◽  
Portfolio Risk ◽  
Economic Sectors ◽  
The Family ◽  
Additional Fund ◽  
Fund Families ◽  
Mutual Fund Family ◽  
The Impact ◽  
Family Membership

AbstractMany investors confine their mutual fund holdings to a single fund family either for simplicity or through restrictions placed by their retirement savings plan. We find evidence that mutual fund returns are more closely correlated within than between fund families. As a result, restricting investment to one fund family leads to a greater total portfolio risk than diversifying across fund families. We examine the sources of this increased correlation and find that it is due primarily to common stock holdings, but is also more generally related to families having similar exposures to economic sectors or industries. Fund families also show a propensity to focus on high or low risk strategies, which leads to a greater dispersion of risk across restricted investors. An investor considering adding an additional fund, either in the same family or outside the family, would need to believe the inside fund offered an extra 50 to 70 basis points to have the same Sharpe ratio.

scholarly journals The Impact of Mutual Fund Family Membership on Investor Risk

2010 ◽  
pp. 173-193
Author(s):  
Edwin J. Elton ◽  
Martin J. Gruber ◽  
T. Clifton Green
Keyword(s):  
Mutual Fund ◽  
Mutual Fund Family ◽  
The Impact ◽  
Family Membership

Mutual Fund Herding and the Impact on Stock Prices

CFA Digest ◽  
1999 ◽  
Vol 29 (4) ◽  
pp. 48-49
Author(s):  
H. Kent Baker
Keyword(s):  
Mutual Fund ◽  
Stock Prices ◽  
The Impact

The Impact of Scandals on Mutual Fund Performance, Money Flows and Fees

2013 ◽  
Author(s):  
Adrian Chapman-Davies ◽  
Jerry T. Parwada ◽  
Kian M. Tan
Keyword(s):  
Mutual Fund ◽  
Fund Performance ◽  
Mutual Fund Performance ◽  
Money Flows ◽  
The Impact

The Impact of Benchmark Choice on US Mutual Fund Benchmark-Adjusted Performance and Ranking

2017 ◽  
Author(s):  
Irina Bezhentseva Mateus ◽  
Cesario Mateus ◽  
Natasa Todorovic
Keyword(s):  
Mutual Fund ◽  
The Impact

A Study on Investment Decision of Investors With Reference to Penetration of Mutual Funds in India

2016 ◽  
Vol 5 (2) ◽  
Author(s):  
Ratish C Gupta ◽  
Dr. Manish Mittal
Keyword(s):  
Decision Making ◽  
Real Estate ◽  
Mutual Funds ◽  
Capital Markets ◽  
Mutual Fund ◽  
Financial Services ◽  
Investment Decision ◽  
Fund Industry ◽  
Mutual Fund Industry ◽  
The Impact

The Indian mutual fund industry is one of the fastest growing and most competitive segments of the financial sector. The extent of under-penetration in the market is a sore point with the financial services industry, with a large amount of savings being channelized into fixed deposits, gold and real estate rather than the capital markets. The mutual fund industry is yet to spread its reach beyond Tier I cities. The top fifteen cities contribute to 85% of the pie, with the remaining 15% distributed among other cities. The study seeks to determine the impact of decision making of investors on current situation of mutual fund industry.

Sign in / Sign up

Export Citation Format

Share Document