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Italian Open End Mutual Fund Costs

Author

Listed:
  • Anolli, Mario
  • Del Giudice, Alfonso

Abstract

We investigate the costs investors incur when they hold shares of Italian open end mutual funds. The overall explicit cost can range from less than 50 to well over 250 basis points in terms of assets under management. Nevertheless, mutual funds investors seem to be almost unaware of the importance of costs and tend to focus mainly on the net return when making their investment decisions. We measure the overall costs of a large sample of mutual funds managed by Italian intermediaries in the period 2000-2003 and also evaluate the determinants of cost efficiencies for the period 2000-2003.

Suggested Citation

  • Anolli, Mario & Del Giudice, Alfonso, 2008. "Italian Open End Mutual Fund Costs," MPRA Paper 8111, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:8111
    as

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    File URL: https://mpra.ub.uni-muenchen.de/8111/1/MPRA_paper_8111.pdf
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    References listed on IDEAS

    as
    1. Narayanan Jayaraman & Ajay Khorana & Edward Nelling, 2002. "An Analysis of the Determinants and Shareholder Wealth Effects of Mutual Fund Mergers," Journal of Finance, American Finance Association, vol. 57(3), pages 1521-1551, June.
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    6. McLeod, Robert W & Malhotra, D K, 1994. "A Re-examination of the Effect of 12B-1 Plans on Mutual Fund Expense Ratios," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 17(2), pages 231-240, Summer.
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    8. repec:fth:pennfi:68 is not listed on IDEAS
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    11. D. K. Malhotra & Robert W. McLeod, 1997. "An Empirical Analysis Of Mutual Fund Expenses," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 20(2), pages 175-190, June.
    12. Joseph Golec, 2003. "Regulation And The Rise In Asset‐Based Mutual Fund Management Fees," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 26(1), pages 19-30, March.
    13. Khorana, Ajay & Servaes, Henri, 1999. "The Determinants of Mutual Fund Starts," Review of Financial Studies, Society for Financial Studies, vol. 12(5), pages 1043-1074.
    14. Berkowitz, Michael K. & Kotowitz, Yehuda, 2002. "Managerial quality and the structure of management expenses in the US mutual fund industry," International Review of Economics & Finance, Elsevier, vol. 11(3), pages 315-330.
    15. William N. Goetzmann & Nadav Peles, 1997. "Cognitive Dissonance And Mutual Fund Investors," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 20(2), pages 145-158, June.
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    Cited by:

    1. Zagaglia, Paolo, 2014. "International portfolio allocation with European fixed-income funds: What scope for Italian funds?," MPRA Paper 57878, University Library of Munich, Germany.

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    More about this item

    Keywords

    mutual fund expenses; total expense ratio; mutual fund transaction costs; economies of scale;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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