Munich Personal RePEc Archive

Does Misclassification of Equity Funds Exist? Evidence from Malaysia

Lau, Wee Yeap and Chan, Tze-Haw (2004): Does Misclassification of Equity Funds Exist? Evidence from Malaysia.

[img]
Preview
PDF
MPRA_paper_2029.pdf

Download (341kB) | Preview

Abstract

Applying the style analysis developed by Sharpe (1988, 1992), this paper investigates the classification of equity funds in Malaysia. A methodology for creating purified mutual fund style indexes is used to verify existing classifications. The paper concludes that an improper classification of funds would not only cause mismatch between investors objectives and funds’ profile, it also affects the process of income smoothing in the lifecycle of investors. Besides estimating the possible economic impact due to misclassification, this study highlights the importance of a proper classification system of equity funds in Malaysian context and its implication towards investor’s protection.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.