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An individual level analysis of the mutual fund investment decision

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Abstract

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.

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Authors and Affiliations

  1. Graduate School of Business, Columbia University, New York, NY

    Noel Capon (Professor of Business)

  2. Anderson Graduate School of Management, UCLA, Los Angeles, CA

    Gavan J. Fitzsimons (Assistant Professor)

  3. Prince and Associates, Stratford, CT

    Russ Alan Prince (President)

Authors
  1. Noel Capon
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  2. Gavan J. Fitzsimons
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  3. Russ Alan Prince
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Capon, N., Fitzsimons, G.J. & Alan Prince, R. An individual level analysis of the mutual fund investment decision. J Finan Serv Res 10, 59–82 (1996). https://doi.org/10.1007/BF00120146

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