This article explores the relationships of mutual fund advertising and investor skill in making fund choices. Fund advertising dominates the choices of unsophisticated investors. Advertising appeals to investor emotions by resonating with current beliefs, not by providing information that...

Barber, Odean, and Zheng's [2005] analysis of mutual fund front-end loads, sales commissions, and operating expenses finds that over the past several decades ordinary investors have “learned” what they value in choice of funds. And, fund advisers learned early on to provide what attracts...

This paper includes theories of advertising and investor behavior and their application to mutual fund advertising and investor choice. Mutual fund advertising and its affect on investor choice is discussed in the context of the role of advertising, advertising as persuasion, investor choice,...

The basic question is why does mutual fund advertising work? The summation of external evidence is compatible with evidence that larger mutual fund advertising attracts investors with below average financial literacy who find the investment decision process overwhelming: (1) Investor levels of...

The purpose of this chapter is to review interactions between mutual funds and individual investors in choosing equity mutual funds. Probably the largest question is why both sophisticated and unsophisticated investors persist in investing in actively managed funds that generally result in...

This article provides theories of advertising and investor behavior that apply to mutual fund advertising and investor fund choices. Mutual fund advertising and its effect on investor fund choices is assessed in context of the role of advertising, advertising as persuasion, investor choice,...

The basic question that this article addresses is: Why does mutual fund advertising work? The summation of external evidence is compatible with evidence that greater mutual fund advertising attracts investors with below-average financial literacy who find the investment decision process...

Barber, Odean, and Zheng's (2005) analysis of mutual fund front-end loads, sales commissions, and operating expenses finds that over the past several decades ordinary investors have “learned” what it is they value in choice of funds. And, fund advisers learned early on to provide what...

This article explores the relationships of mutual fund advertising and investor skill in making fund choices. Some key takeaways can be drawn from our analysis of the four factors affecting the relationship between mutual fund advertising and investors' fund choices, and whether they lead...