How Important is the Distribution Channel for Mutual Fund Flows?

Publikation: KonferencebidragPaperForskningpeer review

Abstrakt

We use bank failures to analyse exogenous variation in the distribution channel of bankaffiliated mutual funds. Our contribution is three-fold. First, we establish a causal effect from the distribution channel of mutual funds to retail investors’ fund portfolios. As our main empirical result, we secondly document that the magnitude of flows induced by changes in the distribution channel is large; it drives at least a third of households’ mutual fund choices. Third, we show that mutual fund flows are not directed into high-rated funds. We conclude that the distribution channel has a large, causal, and detrimental impact on investors’ portfolios.
OriginalsprogEngelsk
Publikationsdato2020
Antal sider53
StatusUdgivet - 2020
BegivenhedThe 80th Annual Meeting of American Finance Association. AFA 2020 - San Diego, USA
Varighed: 3 jan. 20205 jan. 2020
Konferencens nummer: 80
https://afajof.org/annual-meeting/

Konference

KonferenceThe 80th Annual Meeting of American Finance Association. AFA 2020
Nummer80
LandUSA
BySan Diego
Periode03/01/202005/01/2020
Internetadresse

Emneord

  • Mutual funds
  • Retail investors
  • Fund flows
  • Distribution channel

Citationsformater

Florentsen, B., Nielsson, U., Raahauge, P., & Rangvid, J. (2020). How Important is the Distribution Channel for Mutual Fund Flows?. Afhandling præsenteret på The 80th Annual Meeting of American Finance Association. AFA 2020, San Diego, USA.