Mutual Fund Fees Around the World

Khorana, Ajay, Servaes, Henri and Tufano, Peter (2009) Mutual Fund Fees Around the World. Review of Financial Studies, 22 (3). pp. 1279-1310.


Using a new database, we study fees charged by 46,580 mutual fund classes offered for sale in 18 countries, which account for about 86 of the world fund industry in 2002. We examine management fees, total expense ratios, and total shareholder costs (including load charges). Fees vary substantially across funds and from country to country. To explain these differences, we consider fund, sponsor, and national characteristics. Fees differ by investment objectives: larger funds and fund complexes charge lower fees; fees are higher for funds distributed in more countries and funds domiciled in certain offshore locations (especially when selling into countries levying higher taxes). Substantial cross-country differences persist even after controlling for these variables. These remaining differences can be explained by a variety of factors, the most robust of which is that fund fees are lower in countries with stronger investor protection.

Item Type: Article
Keywords: mutual funds, finance
Subject(s): Finance
Date Deposited: 29 Aug 2012 15:21
Last Modified: 19 Sep 2018 09:21
Funders: N/A

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