How Does Simplified Disclosure Affect Individuals' Mutual Fund Choices?

DSpace/Manakin Repository

How Does Simplified Disclosure Affect Individuals' Mutual Fund Choices?

Citable link to this page

. . . . . .

Title: How Does Simplified Disclosure Affect Individuals' Mutual Fund Choices?
Author: Laibson, David I.; Beshears, John; Choi, James J.; Madrian, Brigitte

Note: Order does not necessarily reflect citation order of authors.

Citation: Beshears, John, James J. Choi, David I. Laibson, and Brigitte C. Madrian. 2009. How does simplified disclosure affect individuals' mutual fund choices? NBER Working Paper Series 14859.
Full Text & Related Files:
Abstract: We use an experiment to estimate the effect of the SEC’s Summary Prospectus, which simplifies mutual fund disclosure. Our subjects chose an equity portfolio and a bond portfolio. Subjects received either statutory prospectuses or Summary Prospectuses. We find no evidence that the Summary Prospectus affects portfolio choices. Our experiment sheds new light on the scope of investor confusion about sales loads. Even with a one-month investment horizon, subjects do not avoid loads. Subjects are either confused about loads, overlook them, or believe their chosen portfolio has an annualized log return that is 24 percentage points higher than the load-minimizing portfolio.
Published Version: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1376182##
Other Sources: www.som.yale.edu/faculty/jjc83/summaryprospectus.pdf
Terms of Use: This article is made available under the terms and conditions applicable to Open Access Policy Articles, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#OAP
Citable link to this page: http://nrs.harvard.edu/urn-3:HUL.InstRepos:4686778

Show full Dublin Core record

This item appears in the following Collection(s)

  • FAS Scholarly Articles [6463]
    Peer reviewed scholarly articles from the Faculty of Arts and Sciences of Harvard University
 
 

Search DASH


Advanced Search
 
 

Submitters