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Periodic public information on investment funds and how it influences investors´ decisions

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  • Ramiro Losada

Abstract

This article analyzes how the information contained in the public information of investment funds affects the decisions of their participants. One of the goals of this type of regulatory text is to reduce the information asymmetry faced by investors, especially retail investors, when they want to invest in the securities markets. Specifically, two types of texts are analyzed: the first, devoted to describing the fund's investment policy; the second, known as an explanatory appendix devoted to describing the performance of the fund in the last quarter and the manager's predictions for the next quarter. From the results obtained, it can be derived that the information contained in these texts could influence the volume of both subscriptions and redemptions. However, the influence would be very limited. At the same time, there is a weak evidence that they could reduce the participations costs of investors when making their decisions to buy and sell funds.

Suggested Citation

  • Ramiro Losada, 2022. "Periodic public information on investment funds and how it influences investors´ decisions," CNMV Working Papers CNMV Working Papers no. 7, CNMV- Spanish Securities Markets Commission - Research and Statistics Department.
    • Handle: RePEc:cnv:wpaper:dt_76en
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    More about this item

    Keywords

    Investment funds; Periodic public information; Text analysis; Subscriptions; Redemptions; Participations costs.;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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