Investor Attention, Fee Structure, and Newly Issued Funds

Hong Yi Chen; Hsuan Chi Chen; Christine W. Lai; Pei Ling Yang

doi:10.1142/S021909152350011X

Investor Attention, Fee Structure, and Newly Issued Funds

Hong Yi Chen^*, Hsuan Chi Chen, Christine W. Lai, Pei Ling Yang

^*Corresponding author for this work

Department of Business Administration

Research output: Contribution to journal › Article › peer-review

Abstract

This study examines the impact of investor attention on the fund inflows and survival of newly issued equity and bond funds. We employ the residual search volume index (RSVI) from Google Trends to directly measure investor attention to a mutual fund. We find that the RSVI is positively related to fund inflows for both new equity and bond funds. However, the RSVI is only positively related to the probability of survival for new equity funds, not for new bond funds. These results suggest that in addition to traditional channels such as advertising and sales forces, the Internet can serve as an alternative and effective tool for marketing and product distribution in the mutual fund industry.

Original language	English
Article number	2350011
Journal	Review of Pacific Basin Financial Markets and Policies
Volume	26
Issue number	2
DOIs	https://doi.org/10.1142/S021909152350011X
Publication status	Published - 2023 Jun 1

Keywords

Mutual funds
fee structure
investor attention
survival

ASJC Scopus subject areas

Finance
Economics and Econometrics

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10.1142/S021909152350011X

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title = "Investor Attention, Fee Structure, and Newly Issued Funds",

abstract = "This study examines the impact of investor attention on the fund inflows and survival of newly issued equity and bond funds. We employ the residual search volume index (RSVI) from Google Trends to directly measure investor attention to a mutual fund. We find that the RSVI is positively related to fund inflows for both new equity and bond funds. However, the RSVI is only positively related to the probability of survival for new equity funds, not for new bond funds. These results suggest that in addition to traditional channels such as advertising and sales forces, the Internet can serve as an alternative and effective tool for marketing and product distribution in the mutual fund industry.",

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AU - Chen, Hong Yi

AU - Chen, Hsuan Chi

AU - Lai, Christine W.

AU - Yang, Pei Ling

PY - 2023/6/1

Y1 - 2023/6/1

N2 - This study examines the impact of investor attention on the fund inflows and survival of newly issued equity and bond funds. We employ the residual search volume index (RSVI) from Google Trends to directly measure investor attention to a mutual fund. We find that the RSVI is positively related to fund inflows for both new equity and bond funds. However, the RSVI is only positively related to the probability of survival for new equity funds, not for new bond funds. These results suggest that in addition to traditional channels such as advertising and sales forces, the Internet can serve as an alternative and effective tool for marketing and product distribution in the mutual fund industry.

AB - This study examines the impact of investor attention on the fund inflows and survival of newly issued equity and bond funds. We employ the residual search volume index (RSVI) from Google Trends to directly measure investor attention to a mutual fund. We find that the RSVI is positively related to fund inflows for both new equity and bond funds. However, the RSVI is only positively related to the probability of survival for new equity funds, not for new bond funds. These results suggest that in addition to traditional channels such as advertising and sales forces, the Internet can serve as an alternative and effective tool for marketing and product distribution in the mutual fund industry.

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KW - fee structure

KW - investor attention

KW - survival

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Investor Attention, Fee Structure, and Newly Issued Funds

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Keywords

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