Costs associated with mutual funds in Spain
Article first published online: 29 APR 2009
Copyright © 2009 John Wiley & Sons, Ltd.
International Journal of Finance & Economics
Volume 15, Issue 2, pages 165–179, April 2010
How to Cite
Toledo, I. and Marco, R. (2010), Costs associated with mutual funds in Spain. Int. J. Fin. Econ., 15: 165–179. doi: 10.1002/ijfe.394
- Issue published online: 23 MAR 2010
- Article first published online: 29 APR 2009
- Mutual funds;
- management fee;
- custodial fee
This study examines the mutual fund market in Spain from the point of view of management and custodial costs. For this purpose it estimates functions explaining these fees using ordinary least squares and panel data. The results confirm that the most relevant factors in determining the management fee are the risk incurred by the managed portfolio, the level of its cash holding, and the number of shareholders in relation to the size of the fund. In addition, it highlights two aspects of the Spanish market with respect to the results obtained by similar studies in the North American market and in some European countries (Finland, Italy): first, the lack of a learning curve reducing operational costs, and, second, the lack of economies of scale in the management costs. Copyright © 2009 John Wiley & Sons, Ltd.