This chapter discusses the structure of and distribution channels in the mutual fund industry. Expenses, loads, and other costs are also explored. The coverage also includes investment and redemption provisions, tax effects, the relation between fund flows/size and performance, and governance issues

Using a unique money manager database that allows managers to identify their own investment styles, we examine 4,754 non mutual fund value- and growth-oriented portfolios over the period 1999-2003. Consistent with style definitions, we find that on average, growth funds have price-earnings...