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How Does Simplified Disclosure Affect Individuals' Mutual Fund Choices?
National Bureau of Economic Research [NBER] Link to more items from this source
Apr. 14, 2009

Excerpt: We find no evidence that the Summary Prospectus affects portfolio choices. Our experiment sheds new light on the scope of investor confusion about sales loads. Even with a one-month investment horizon, subjects do not avoid loads. Subjects are either confused about loads, overlook them, or believe their chosen portfolio has an annualized log return that is 24 percentage points higher than the load-minimizing portfolio.  MORE >>

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