Chasing Names

April 2004
Journal of Financial Planning;Apr2004, Vol. 17 Issue 4, p25
Academic Journal
The article talks about research conducted by hree professors, two from Purdue University, Indiana and one from Virginia Tech, Virginia, who examined 296 mutual funds that had changed their names between April 1994 and July 2001. Some of the funds changed names to reflect altered investing styles, but others, according to the professors, changed names simply to associate with current high-return styles and disassociate themselves from current low-return styles without altering their underlying investment style. Whatever the reason for the name change, it worked. Investor inflows grew an average of 22 percent due to the name change, according to the professors' calculations, whether the fund actually improved performance or not. In fact, on average, funds that changed their names underperformed their peers, according to the professors.


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