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Estimates of economies of scale by mutual fund size reveal several findings: First, natural logarithms of assets, fund age, equity funds, broker availability, deferred loads, portfolio turnover ratios, 12b-1 plan funds, and three-year standard deviations have positive effects on fund costs, but concentrated funds and insti-tutional funds have ...
May 1, 2015 · Using a large sample containing bond and equity funds sold in the French market, the results show that only small economies of scale are passed on to investors through the reduction of the fees as the fund assets increase. Moreover, fund promoters seem to transfer economies of scale only to investors of equity funds.
- Linh Tran-Dieu
- 2015
Oct 8, 2019 · For example, mutual funds based in Luxembourg and Ireland contain 50 times as many assets as Norwegian mutual funds, but their bond funds are 3 times pricier (as measured by what...
- John Rekenthaler
Feb 6, 2009 · Mutual fund companies rely on economies of scale to generate profits. In theory, it doesn't cost much more to manage $500 million than $50 million, so the greater the assets, the greater the ...
Mar 26, 2020 · Mutual funds, hedge funds, exchange traded funds, pension funds, and unit investment trusts are all examples of professionally managed pooled funds. Investors in pooled funds...
Sep 7, 2022 · Using a sample of REMFs from 1995 to 2019, we examine the effect of industry and fund-level economies of scale on REMF performance. We document a negative relation between industry size and REMF performance consistent with diseconomies of scale at the industry level but not at the fund level.
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Do mutual funds have economies of scale?
Are mutual fund Expense ratios consistent with economies of scale?
Do funds transfer economies of scale?
Do equity funds have economies of scale?
Apr 27, 2017 · There are economies of scale in fund administration. 2. The average fund exhibits cost economies of scale. 3. Fund size greatly reduces performance. 4. Fund expense ratios are consistent with economies of scale at both fund and fund family levels. 5. Fund economies of scale are very much in evidence. 6.
