RT Journal Article
SR Electronic
T1 Spanish Mutual Fund Misclassification
JF The Journal of Investing
FD Institutional Investor Journals
SP 41
OP 51
DO 10.3905/joi.2005.479388
VO 14
IS 1
A1 Arturo Rodríguez Castellanos
A1 Belén Vallejo Alonso
YR 2005
UL https://pm-research.com/content/14/1/41.abstract
AB Mutual fund classifications are a tool for defining fund characteristics for marketing and comparison purposes. If fund managers can manipulate the characteristics of mutual fund portfolios for financial incentives, they may convey confusing signals that encourage investors to select funds not appropriate to their needs. Analysis of a database of Spanish mutual funds to see whether funds in the same category are comparable and whether funds in different categories are indeed different shows that 33% of funds are misclassified. This result demonstrates the weaknesses of current classification systems in providing a reliable reference for fund evaluation and selection.