Author(s)

Ayfer Gurun

Naveen Jindal School of Management, University of Texas at Dallas, Richardson, USA.

Using stochastic dominance approach of Lim, Maasouimi, and Martin (2006) and Linton, Maasoumi, and Whang (2005), I find that mutual funds with low management fees, regardless of the growth or value strategy they follow, stochastically dominate the S&P500 index. High fee funds, on the other hand, fail to stochastically dominate the S&P500 index. Collectively, these results suggest that the historical performance of mutual fund managers may not entirely align with the higher fees they typically charge.

Stochastic Dominance, Mutual Fund Performance

Gurun, A. (2023) Mutual Fund Management Fees and Returns: A Stochastic Dominance Analysis. Theoretical Economics Letters, 13, 1492-1500. doi: 10.4236/tel.2023.136084.