The structure of mutual fund charges

• 成果类型: Article
• 署名作者: Chordia, T
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/0304-405X(95)00856-A
• 发表日期: 1996
• 页码: 3-39
• 关键词: mutual fund fees; risk sharing

摘要

This paper provides an explanation for the diversity in investment strategies and fees of open-end mutual funds. Mutual funds seek to dissuade redemptions through front- and back-end load fees. The empirical evidence is consistent with model predictions that such fees dissuade redemptions in open-end funds, and that funds hold more cash when there is uncertainty about redemptions. Furthermore, funds with load and redemption fees hold less cash that their no-load counterparts. The results suggest that aggressive funds are sensitive to cash flows and are likely to rely on fees to dissuade redemptions.