We develop a dynamic model to study the interaction between obfuscation and investor sophistication in retail financial markets. Taking into account different learning mechanisms within the investor population, we characterize the optimal timing of obfuscation for a profit-maximizing monopolist....

This paper studies the effect of new fund flows on investment behavior and the resulting equilibrium price of risk. The Small Fund Industry model shows equilibria with overinvestment in unprofitable and underinvestment in profitable investment opportunities. The Large Fund Industry model derives...

Mutual fund is an investment company or trust that pools the resources from thousands of its unit holders, who share common investment goal, and then diversifies its investments into different types of securities in order to realize potential returns with reasonable safety.The objective of the...

The Mutual Funds provides alternative opportunities to investors with benefits of diversification and professional research back up. Once the objectives of investment and associated constraints have been identified, the Fund Managers could select an efficient portfolio. The Fund Managers...

This paper analyses the disposition effect at an individual level by studying the trading records of 20 379 investors over 1999-2006. As in previous studies, we confirm a huge heterogeneity among investors and we propose to explain these differences on the basis of financial sophistication and...

Analyzing cross sectional determinants of fund flows, this study finds evidence that investors' risk aversion is time-varying. In particular, the periods over which the increases in risk aversion are observed are associated with contemporaneously low market returns, suggesting that increases in...