Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
960947 | Journal of Financial Markets | 2015 | 25 Pages |
Abstract
We study the impact of style representation on portfolio choice using the choices of the Swedish population in their retirement accounts. We show that investor choice depends on how funds are grouped in the menu (“styles”). An exogenous increase in the style representation increases investment in the funds of the style. By using information on the performance of the funds that the investors choose, we show that the sensitivity to style exposure is negatively related to the investor׳s degree of informativeness. This suggests that style exposure represents a way of coping with limited (private) information.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Massimo Massa, Andrei Simonov, Anders Stenkrona,