We investigate the relation between demographic structure and mutual fund demand over twenty one countries by employing characteristics of three age cohorts: Young (20 – 39 years old), Middle (40 – 59 years old), and Old (over 60 years old). For that purpose, we employ two demographic feature variables, the level of three generations and the growth rate in the level of each generation. Our findings are as follows. First, we find different effects between generation level and growth rate on the mutual fund demand which correspond the life-cycle risk averse hypothesis. Particularly, by interpreting each generation’s growth rate as reflecting the mutual fund demand from the newly joined people, we find empirical evidence that the newly joined to the old generation has stronger demand for mutual funds that other age cohorts. Secondly, we find that investors’ response to simple return and risk adjusted Sharpe ratio reveals a pattern of ‘∪’ over life cycle in each generation most populated countries while investors’ response to simple return and Sharpe ratio is opposite pattern of ‘∩’ over life cycle for the least populated generation countries.
Key Words: mutual fund flows, demographics, market return, Sharpe ratio
학회 소식
공지사항
[2014년 제 1차] How Does Aging Affect Mutual Fund Demand?: New Evid
작성자 : 관리자
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게시일 :
2014-02-26