TITLE

Cheap Funds Hammer Expensive Funds…

PUB. DATE
August 2007
SOURCE
Journal of Financial Planning;Aug2007, Vol. 20 Issue 8, p12
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article discusses an indicator of both performance and survival for mutual funds. Research performed by Russel Kinnel of Morningstar indicates that the higher a mutual fund's expense ratio is, the greater the probability of it underperforming, and the stronger the likelihood of the fund either being liquidated or merged out of existence. Among U.S. stock funds, Kinnel discovered, those in the top quintile with respect to expense ratios had double the attrition rate of those in the lowest quintile.
ACCESSION #
26087910

 

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