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http://hdl.handle.net/2445/69487
Title: | Risk-Adjusted Impact of Administrative Costs on the Distribution of Terminal Wealth for Long-Term Investment |
Author: | Guillén, Montserrat Jarner, Søren Fiig Nielsen, Jens Perch Pérez Marín, Ana María |
Keywords: | Riquesa Distribució (Teoria econòmica) Societats d'inversió Control de costos Wealth Distribution (Economic theory) Mutual funds Cost control |
Issue Date: | 2014 |
Publisher: | Hindawi Publishing Corporation |
Abstract: | The impact of administrative costs on the distribution of terminal wealth is approximated using a simple formula applicable to many investment situations. We show that the reduction in median returns attributable to administrative fees is usually at least twice the amount of the administrative costs charged for most investment funds, when considering a risk-adjustment correction over a reasonably long-term time horizon. The example we present covers a number of standard cases and can be applied to passive investments, mutual funds, and hedge funds. Our results show investors the potential losses they face in performance due to administrative costs. |
Note: | Reproducció del document publicat a: http://dx.doi.org/10.1155/2014/521074 |
It is part of: | Scientific World Journal, 2014, vol. 2014, num. 521074, p. 1-12 |
URI: | http://hdl.handle.net/2445/69487 |
Related resource: | http://dx.doi.org/10.1155/2014/521074 |
ISSN: | 1537-744X |
Appears in Collections: | Articles publicats en revistes (Econometria, Estadística i Economia Aplicada) |
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File | Description | Size | Format | |
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645629.pdf | 2.38 MB | Adobe PDF | View/Open |
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