KDI JEP Sales Compensation and Recommendations as the Fund of the Month May 31, 2019
May 31, 2019
-
Yoonhae Oh
프로필
This study analyzes whether mutual fund distributors are more likely to recommend products with higher sales compensation to maximize their profit. The lists of the ‘fund of the month’ on their webpages are utilized from April of 2015 to August of 2015. A simple comparative analysis shows that the average sales fees and the average front-end load are significantly higher in the recommended funds among the A share class of domestic equity funds. The results of a regression analysis confirm that funds with high sales compensation levels are more likely to be recommended. This holds true for both domestic equity funds and hybrid bond funds even after controlling for fund age, fund size, and past returns.
- Contents
-
Ⅰ. Introduction
Ⅱ. Literature Review
Ⅲ. Background and Hypothesis
Ⅳ. Comparative Analysis
Ⅴ. Regression Analysis
Ⅵ. Concluding Remarks
APPENDIX
REFERENCES
We reject unauthorized collection of email addresses posted on our website by using email address collecting programs or other technical devices. To access the email address, please type in the characters exactly as they appear in the box below.
Please enter the security code to prevent unauthorized information collection.