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Mutual Funds and Segregated Funds: A Comparison


  • Palombizio, Ennio A.


Mutual Funds are the most common form of investment for the average household. They offer a fair amount of return for a limited amount of risk. Segregated Funds, which are, simply put, mutual funds with additional features, have grown in popularity as of late. It is something of great interest to understand the risks and returns of the fund types and better grasp the advantages and disadvantages to each. By selecting 5 mutual and segregated funds of similar investment patterns and breakdowns, and performing various statistical analyses on their prices and returns, this paper verifies which fund type would be best. VaR analysis and probability distribution modeling allows for this paper to demonstrate how to best model the results and, thus, putting forth the positives and negatives of each fund. In the end, one finds that the overall results show some inconclusiveness and calls for further study with additional factors. The differences, if any, are small and other factors, such as management/broker fees and taxes, could play a role. This paper gives important insight to what one can expect from these investment types and gives allows one to better comprehend the features of each, so that one can become a more informed and shrewd investor which can only be seen as a benefit.

Suggested Citation

  • Palombizio, Ennio A., 2007. "Mutual Funds and Segregated Funds: A Comparison," MPRA Paper 6901, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:6901

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    References listed on IDEAS

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    3. Ivan, Kitov, 2006. "Exact prediction of inflation in the USA," MPRA Paper 2735, University Library of Munich, Germany.
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    6. Kitov, Ivan & Kitov, Oleg & Dolinskaya, Svetlana, 2007. "Inflation as a function of labor force change rate: cointegration test for the USA," MPRA Paper 2734, University Library of Munich, Germany.
    7. Michael F. Bryan & Stephen G. Cecchetti, 1994. "Measuring Core Inflation," NBER Chapters,in: Monetary Policy, pages 195-219 National Bureau of Economic Research, Inc.
    8. Kitov, Ivan & Kitov, Oleg & Dolinskaya, Svetlana, 2007. "Relationship between inflation, unemployment and labor force change rate in France: cointegration test," MPRA Paper 2736, University Library of Munich, Germany.
    9. Kitov, Ivan, 2007. "Exact prediction of inflation and unemployment in Japan," MPRA Paper 5464, University Library of Munich, Germany.
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    14. Smith, Julie K, 2004. "Weighted Median Inflation: Is This Core Inflation?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 36(2), pages 253-263, April.
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    More about this item


    Mutual Funds; Segregated Funds; VaR; risk; returns; investment; probability; distribution; fund; finance; statistical; econometrics; quantitative;

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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