The Determinants of Mutual Fund Starts
Posted: 7 Feb 2000
There are 3 versions of this paper
Abstract
For a sample of 1163 mutual funds started over the period 1979-1992, we find that fund initiations are positively related to the level of assets invested in and the capital gains embedded in other funds with the same objective, the fund family's prior performance, the fraction of funds in the family in the low range of fees, and the decision by large families to open similar funds in the prior year. In addition, consistent with the presence of scale and scope economies, we find that large families and families that have more experience in opening funds in the past are more likely to open new funds.
JEL Classification: G12, G14
Suggested Citation: Suggested Citation
Ajay Khorana (Contact Author)
Georgia Institute of Technology - Finance Area ( email )
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