The active mutual fund equilibrium model developed by Berk and Green (2004) predicts that fees should not matter for investors’ mutual fund choices. We examine how fees influence demand for active mutual funds by analyzing time variation in funds’ fees. Since investors should not pay "alpha...

This paper analyzes whether sustainable investors are sensitive to fees and whether investors in funds with a higher sustainability rating are more sensitive to fees than investors in non-sustainable funds. Using an international sample of equity mutual funds, I find that they in general are...

Active fee is the ratio between the excess cost of active management over the index alternative and the fund's activity level. We suggest a simple model that explains active capital allocations in the presence of time-varying active fee. We show that investors respond in accordance with the...

Closet indexers are low-activity mutual funds sold and marketed as active. Their investors are thus only partially receiving the service they pay for. Therefore, regulation is considered by supervisory authorities worldwide. We examine the impact of policy scrutiny by comparing scrutinized...