IDEAS home Printed from https://ideas.repec.org/p/koe/wpaper/2601.html

Designing an Investment Trust: Theoretical Foundations

Author

Listed:
  • Fujio Takata

    (Graduate School of Economics, Kobe University)

Abstract

This paper deals with a dynamic portfolio with dividends. The portfolio consists of a risky asset and a safe one. Investors initially buy the portfolio and enjoy their consumption based on the dividends over time. During their lifetime, they reinvest the funds after the dividends are paid. In short, investors adopt a strategy of buying and holding. They decide on a portfolio and the dividend rate to maximize their utility in every period, in a series of separate decisions. In this situation, there seems to be a tradeoff between dividends and reinvestment, to the possible detriment of the portfolio. Thus, we focus on establishing an optimal path for dividends. JEL Classification: G-11; G-12; G-23; G-32.

Suggested Citation

  • Fujio Takata, 2026. "Designing an Investment Trust: Theoretical Foundations," Discussion Papers 2601, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:2601
    as

    Download full text from publisher

    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2026/2601.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:koe:wpaper:2601. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kimiaki Shirahama The email address of this maintainer does not seem to be valid anymore. Please ask Kimiaki Shirahama to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/fekobjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.