There are several types of domestic-hybrid mutual funds that apply various stock/bond allocations in efforts to provide full diversification in one portfolio. These “one-stop shopping” funds were initially designed to simplify decision making for long-term investors and pension plan...

This is a first-step mutual funds study that provides analysis and disclosure of the elements of a newly defined total expense ratio, which includes the regulatory expense ratio, brokerage commissions, and implicit trading costs. Three structures are provided that identify whether a particular...

In this study, we provide extensive evidence on the performance and characteristics of 1,779 U.S. domestic, actively managed retail equity mutual funds. We find that expense ratios differ widely among Morningstar categories. Overall, our results indicate that funds with low expense ratios...

This study further develops and defines the concept of normative transparency of disclosure. As defined, mutual fund normative transparency is that fund proactive, voluntary disclosure as well as legal and regulatory disclosure required for investors to be able to make information efficient fund...

Given their simplicity and presumed commodity-like nature, institutional Samp;P 500 Index mutual funds should be subject to active price competition, resulting in only nominal size-adjusted differences in expenses. We find a wide disparity among fund expense ratios and their corresponding...

Cluster analysis of the Morningstar 500 style classifications (growth, blend, and value) of large-cap mutual funds identifies three homogeneous style groups: growth and two versions of value. The mix of Morningstar styles in each identified cluster reflects problems in correctly classifying fund...

With respect to its small-cap funds, the Morningstar category rating is preferred to the Morningstar star rating with respect to the preponderance of its associations with both the Jensen Alpha and Sharpe Index. But, neither captures the entirety of the Sharpe Index and, especially, the Jensen...