Sebastian Müller|Martin Weber
Financial Literacy and Mutual Fund Investments: Who Buys Actively Managed Funds?
Roche (United States)|Roche (United States)
previous research indicates lack financial sophistication might explain past strong growth active management construct objective financial literacy score analyze relation financial literacy mutual fund investment behavior show positive influence financial literacy likelihood investing lowcost fund alternatives however find even sophisticated investors sample rely overwhelmingly active funds smart money among smarter investors cannot explain finding weak evidence superior fund selection abilities among financially literate investors results indicate lack financial literacy among mutual fund customers cannot completely explain past growth actively managed funds