Competition in the Swedish mutual fund industry

University essay from Göteborgs universitet/Institutionen för nationalekonomi med statistik

Abstract: The mutual fund industry plays an important role in the Swedishsociety where a part of the future income for all people is linkedto the return of Swedish mutual fund industry and its assets.The purpose of this thesis is to investigate the competitivenessin the Swedish premium pension system. We use publicly availabledata on market values, entry and exit to estimate the degreeof competition in the premium pension system. By constructinga structural competition model we find that market valueof mutual funds is negatively correlated by the concentration ofthe market. The premium pension system is characterized by ahigh degree of entry over the study period, 2001-2013. Mutualfunds with lower market value are more likely to both enter andexit. Our findings suggest that the probability of exit does notincrease when more mutual funds are added into the premiumpension system.

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