Does Misclassification of Equity Funds Exist? Evidence from Malaysia
AbstractApplying the style analysis developed by Sharpe (1988, 1992), this paper investigates the classification of equity funds in Malaysia. A methodology for creating purified mutual fund style indexes is used to verify existing classifications. The paper concludes that an improper classification of funds would not only cause mismatch between investors objectives and funds’ profile, it also affects the process of income smoothing in the lifecycle of investors. Besides estimating the possible economic impact due to misclassification, this study highlights the importance of a proper classification system of equity funds in Malaysian context and its implication towards investor’s protection.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 2029.
Date of creation: 2004
Date of revision: 2005
Mutual Fund Classification; Style Analysis; Investor’s Protection;
Find related papers by JEL classification:
- G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
- G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
- G30 - Financial Economics - - Corporate Finance and Governance - - - General
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Open Access publications from Tilburg University
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