Mutual funds, part I: reshaping the American financial system
AbstractSince the mid 1980s the mutual fund industry has enjoyed explosive growth in the number of funds, the types of funds available, and total assets under management. Much of this growth is the result of the increasing convenience offered to owners of long-term assets. Mutual funds offer portfolio diversification and financial research unavailable to the individual investor. They do this in an economical way through economies of scale, and they provide liquidity not available to the owner of individual shares or debt instruments. It should come as no surprise that the proportion of equity and debt instruments held through mutual funds has risen relative to outright ownership.> This article provides a broad overview of the mutual fund industry, examining the mutual fund concept, mutual fund regulation, and taxation. The author discusses the direct and indirect costs of holding mutual fund shares, and he examines the growth, liquidity, and redemption experiences of mutual funds. He also looks at the relationship of mutual funds to financial market performance. He finds that mutual funds have been remarkably resilient institutions. Even during the stresses of 1987, industry liquidity remained sufficient to allow share redemptions without threatening the security markets.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Federal Reserve Bank of Boston in its journal New England Economic Review.
Volume (Year): (1997)
Issue (Month): Jul ()
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fuhrer, Jeffrey C & Moore, George R, 1995. "Monetary Policy Trade-offs and the Correlation between Nominal Interest Rates and Real Output," American Economic Review, American Economic Association, vol. 85(1), pages 219-39, March.
- Peter Fortune, 1991. "The municipal bond market, Part I: politics, taxes, and yields," New England Economic Review, Federal Reserve Bank of Boston, issue Sep, pages 13-36.
- Peter Fortune, 1998. "Mutual funds, part II: fund flows and security returns," New England Economic Review, Federal Reserve Bank of Boston, issue Jan, pages 3-22.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catherine Spozio).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.