Affiliation:
1. Gaidar Institute for Economic Policy
2. Wealth Management Institute
Abstract
The paper considers the degree of activity of Russian mutual funds. According to the results obtained, index funds on average deviate by 12% from their base index, while active funds deviate by 56%. It is shown that more active funds are more costly for the shareholders, but at the same time demonstrate a lower net profit adjusted for risk. The deviation of index funds from the base index leads to an even greater loss of profitability than in the case of active funds. The results show that active management of capital in Russia is experiencing difficulties both in terms of high fees and low profitability. Market underdevelopment and low competition create all the prerequisites for the existence of such a situation. As a solution, we propose to develop the market of passive capital management both by monitoring the prices of their products, and through measures aimed at increasing the understanding of the essence of passive management by the mass investor.
Subject
Economics and Econometrics,Finance
Reference12 articles.
1. Inozemtsev E. V. (2017). Backstage games of management companies. HSE Economic Journal, Vol. 21, No. 2, pp. 283—311. (In Russian).
2. Abramov A., Akshentseva K. (2015). Determinants of mutual funds performance in Russia. Journal of Corporate Finance Research, Vol. 34, No. 2, pp. 37-53.
3. Alexander G. J., Jones J. D., Nigro P. J. (1998). Mutual fund shareholders: Characteristics, investor knowledge, and sources of information. Financial Services Review, Vol. 7, No. 4, pp. 301-316.
4. Berk J. B., Green R. C. (2004). Mutual fund flows and performance in rational markets. Journal of Political Economy, Vol. 112, No. 6, pp. 1269-1295.
5. Berk J. B., van Binsberger J. H. (2012). Measuring managerial skill in the mutual fund industry. NBER Working Paper, No. 18184.
Cited by
3 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献