Mutual funds are managed by an investment company. The owners of the mutual fund are different from the shareholders. The investment company owners do not, necessarily, invest in the mutual funds they are managing. Discuss whether this situation results in an incentive for the owners of the investment company to charge higher fees to the mutual funds investors.

Mutual funds are managed by an investment company. The owners of the mutual fund are different from the shareholders. The investment company owners do not, necessarily, invest in the mutual funds they are managing. Discuss whether this situation results in an incentive for the owners of the investment company to charge higher fees to the mutual funds investors.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter15: Mutual And Exchange Traded Funds

Section: Chapter Questions

Problem 8LTAI

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