An evaluation of the attributes considered by investment professionals in selecting mutual funds: The case of Turkey


Gözbaşi O., ÇITAK L.

International Research Journal of Finance and Economics, vol.36, no.1, pp.180-195, 2010 (Refereed Journals of Other Institutions) identifier

  • Publication Type: Article / Article
  • Volume: 36 Issue: 1
  • Publication Date: 2010
  • Title of Journal : International Research Journal of Finance and Economics
  • Page Numbers: pp.180-195

Abstract

Over the past decade Turkey has been catching up with the developments in the global mutual fund industry. Using conjoint analysis, this study investigates the relative importance of the attributes considered by Turkish portfolio managers and investment advisors in selecting mutual funds. It also investigates how the levels of these attributes are valued. The findings indicate that the attributes that matter the most are listed in their order of importance as expense ratio, past performance and experience of the fund manager. While the affiliation of the fund and size of the fund appear to be of moderate importance, it is found that investment advisors and portfolio managers attach even less importance to the number of funds managed by a particular founder and the fund manager's investment style. In the mutual fund industry with increasing diversification and competition, the results of the study is expected to contribute to the process of structuring the funds managed by founders and to offer an insight to individual investors in their mutual fund selection. © EuroJournals Publishing, Inc. 2010.