Journal of Financial Services Research

, Volume 10, Issue 1, pp 59–82

An individual level analysis of the mutual fund investment decision

  • Noel Capon
  • Gavan J. Fitzsimons
  • Russ Alan Prince

DOI: 10.1007/BF00120146

Cite this article as:
Capon, N., Fitzsimons, G.J. & Alan Prince, R. J Finan Serv Res (1996) 10: 59. doi:10.1007/BF00120146


This study investigates the manner in which consumers make investment decisions for mutual funds. Investors report that they consider many nonperformance related variables. When investors are grouped by similarity of investment decision process, a single small group appears to be highly knowledgeable about its investments. However, most investors appear to be naive, having little knowledge of the investment strategies or financial details of their investments. Implications for mutual fund companies are discussed.

Copyright information

© Kluwer Academic Publishers 1996

Authors and Affiliations

  • Noel Capon
    • 1
  • Gavan J. Fitzsimons
    • 2
  • Russ Alan Prince
    • 3
  1. 1.Graduate School of BusinessColumbia UniversityNew York
  2. 2.Anderson Graduate School of ManagementUCLALos Angeles
  3. 3.Prince and AssociatesStratford

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