Modelling management fees of mutual funds using multiple linearregression

University essay from KTH/Matematisk statistik; KTH/Matematisk statistik

Abstract: This paper seeks to investigate whether management fees, set by mutual funds, rely on a set of explanatory variables. The study includes equity, bond, and money market funds, all investing in securities registered in Sweden. Results obtained from the project show that changes in assets under management, standard deviation, and tracking error, for a course of 5 years, can provide some explanation to what management fees mutual funds set. In turn, this raises many interesting questions on how capital flows and fund differentiation affects the fees. Also, a market analysis of the Swedish fund market shows that elements of monopolistic competition are present. Finally, because of the scope of this study, several suggestions on further research have been made.

  AT THIS PAGE YOU CAN DOWNLOAD THE WHOLE ESSAY. (follow the link to the next page)