Subscribe
Categories

Archives
June 2006
M T W T F S S
« May    
 1234
567891011
12131415161718
19202122232425
2627282930  
  • Links

  • Venture Capital/Private Equity

    • A VC, Musings of a VC in NYC
    • Beyond VC
    • Burnham's Beat: Thoughts on software investing
    • BusinessWeek DealFlow
    • Dan Primack's Private Equity Week Wire
    • Due Diligence
    • Feld Thoughts
    • Jason Ball's Tech Bytes
    • Jeff Nolan
    • Josh Wolfe's Weblog
    • NWVentureVoice
    • Occam's Razor
    • Section One
    • TJ's Weblog
    • VC Ball
    • Venture Blog
    • VentureWiki
  • Public Markets Investing

    • Integrity Research Blog
    • The big picture
    • Tom Brown's Bankstocks.com
    • The Kirk Report, one pro's view of the stock market
    • The Capital Spectator
    • Seeking Alpha
  • Online Networks

    • Apophenia
    • Clay Shirky's Writings about the Internet
    • David Weinberger
    • How to Save the World
    • Keith Hampton
    • Life with Alacrity
    • Many-to-Many Blog
    • Mathemagenic
    • Networks, Complexity, and Relatedness
    • Raindrop
    • Ross Mayfield's Weblog
    • Smarter, Simpler, Social, Lee Bryant
    • Stowe Boyd
    • TechCrunch
  • Miscellaneous

    • The Privacy Marketing Review
    • Internet Time Group Blog
    • Internet Marketing and Sales Technology from the Trenches
    • John Robb
  • Profiles

    • Blogstreet Profile
  • Blogging Resources

    • NYC Bloggers Map
  • Productivity

    • 43 Folders
    • Lifehacker

Tools and resources from the Nitron Advisors team. We tend to blog about investing, leadership, management, career acceleration, personal productivity, securities research, and online networks.

June 1, 2006

Why Do Investors Choose High-fee Mutual Funds Despite the Lower Returns?

Posted in General, Public Markets Investing, Securities Research
by David Teten @ 9:44 am —

With their combination of low fees, tax efficiency and simple, autopilot investing style, index funds seem to have captivated American investors. At the same time, however, many investors still hold trillions of dollars in high-fee funds despite well-publicized evidence that low-fee alternatives offer higher returns over the long run. “It struck us that most people just don’t know what mutual fund fees are. So we set out to actually test that,” says Brigitte C. Madrian, professor of business and public policy at Wharton. The result is a paper titled, “Why Does the Law of One Price Fail? An Experiment on Index Mutual Funds,” by Madrian, Yale professor James J. Choi and Harvard economics professor David Laibson.

More: http://knowledge.wharton.upenn.edu/article/1491.cfm