e-Publications@Marquette

Title

Mapping Mutual Fund Investor Characteristics and Modeling Switching Behavior

Authors

Mary Jane Lenard, University of North Carolina
Syed Akhter, Marquette UniversityFollow
Pervaiz Alam, Kent State University - Kent CampusFollow

Document Type

Article

Publication Date

Spring 2003

Source Publication

Financial Services Review

Abstract

Securing a mutual fund that meets investment goals is an important reason why some investors exclusively stay with a particular mutual fund and others switch funds within their fund family. This paper empirically investigates investor attitudes toward mutual funds. Our model, based on investor responses, develops an investor's "risk profile" variable. Results indicate that regardless of whether the investors invest in nonemployer plans or in both employer and nonemployer plans, they consider their investment risk, fund performance, investment mix, and the capital base of the fund before switching funds. The model developed in this study can also assist in predicting investors' switching behavior.

Comments

This article is the published version.

Originally published in Financial Services Review, Volume 12, No. 1 (Spring 2003), online here.

Lenard, M. J., Akhter, S. H., and Alam, P. (2003). "Mapping Mutual Fund Investor Characteristics and Modeling Switching Behavior." Financial Services Review, 12(1): 39-59.