Mutual fund investors desire high risk-adjusted performance at low cost, which may not necessarily be the objective of fund families. Fund families want to maximize assets under management (i.e., their market share) and the resulting management fees. This paper studies the extent to which conflicts of interest are mitigated by competition in the mutual fund industry using the universe of U.S. m...

Abstract This study documents the effect of financial literacy on portfolio diversity family wealth in China with a two-way, fixed-effect model. The results show that most people do not have sufficient to understand assets, which implies lack knowledge China. It also looks into determinants holding each asset, no matter how high- or low-risk, has been fully explored existing literature. empiric...

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We develop an overlapping generations model with re-tradeable paper assets and capital accumulation to analyze the interaction between the real economy and an international asset market. The world consists of two homogeneous countries, which differ only in their initial levels of capital. Consumers who live for two periods transfer wealth over time and across countries by holding international ...

The study shows the areas in which inefficient mutual funds are lagging behind and how they can improve their performance to bring them at par with other efficient mutual funds. Using data envelopment analysis approach, this study compares the relative efficiency of aggressive growth mutual funds. We study the efficiency of mutual funds in terms of risk-adjusted performance, load, 12b-1 plan, a...

This paper develops a model to examine the effects of introducing a partially or fully privatized social security system into an overlapping generations model with an extant payas-you-go system. Privatization is introduced through mutual funds that provide an actuarially fair annuity contract as part of a portfolio of assets that bears a random rate of return. We find that in the presence of th...

General equilibrium models in which economic agents have finite marginal utility from consumption at the origin lead to financial assets whose prices are continuous but exhibit singular components. In particular, there is no bona—fide "interest rate" in such models, although asset prices can be determined by equilibrium considerations (and uniquely, up to the formation of mutual funds). The sin...

Using brokerage account data, we analyze the tax awareness of individual investors. We find strong evidence that taxes matter: investors prefer to locate bonds and mutual funds in retirement accounts and, in December, harvest stock losses in their taxable accounts. However, investors also trade actively in their taxable accounts, realize gains more frequently than losses, and locate a material ...