Skip to main content
Article thumbnail
Location of Repository

IQ and Mutual Fund Choice

By Mark Grinblatt, Seppo Ikäheimo, Matti Keloharju and Samuli Knüpfer

Abstract

Using a comprehensive dataset of Finnish males, we study IQ’s influence on mutual fund choice. High-IQ investors are less likely to own balanced funds, actively managed funds, and funds marketed through a retail network. This behavior tends to reduce high-IQ investors ’ fund fees. Moreover, within each asset class and service category, and controlling for other investor attributes, high-IQ investors prefer the lowest-fee funds, further reducing the fees incurred. IQ’s effect on fee sensitivity is robust to the addition of fund family dummies, which help control for unobservable service attributes. IQ also influences the fee sensitivity of even the most affluent investors, ruling out wealth-related access to low-fee funds as the explanation for IQ’s relationship to fees

Topics: mutual fund, IQ, fees, investor choice JEL classification, G11, G24, D83
Year: 2012
OAI identifier: oai:CiteSeerX.psu:10.1.1.352.2239
Provided by: CiteSeerX
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://citeseerx.ist.psu.edu/v... (external link)
  • http://apps.anderson.ucla.edu/... (external link)
  • http://apps.anderson.ucla.edu/... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.