Incomplete Investor Search: Low-expense Index Funds and Fund Flows in a Management Company
Incomplete Investor Search: Low-expense Index Funds and Fund Flows in a Management Company
dc.contributor.author | Du, Mengqiao | |
dc.date.accessioned | 2022-10-20T19:39:40Z | |
dc.date.available | 2022-10-20T19:39:40Z | |
dc.date.issued | 2022 | |
dc.description.abstract | This paper shows that a low price of index funds draws investor attention to a management company, and investors' subsequent incomplete search within funds in the management company raises the flows of actively managed funds in the same management company by 10%. These spillover effects are more salient among retail investors and among share classes with direct distribution channels. At the management company level, offering low-expense index funds positively influences aggregated flows. Management companies strategically increase the expense ratios of actively managed funds after introducing low-expense index funds. | |
dc.identifier.uri | https://hdl.handle.net/10125/104023 | |
dc.subject | Information processing capacity | |
dc.subject | Incomplete search | |
dc.subject | Fund expenses | |
dc.subject | Fund flows | |
dc.subject | Index funds | |
dc.title | Incomplete Investor Search: Low-expense Index Funds and Fund Flows in a Management Company |
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