Analysis of the impact of redemption fees on mutual fund performance : a study on US small value funds

Abstract

The purpose of this paper is to test the effect of redemption fees on mutual fund performance. The focus type of mutual funds in this paper is US small value funds. In order to achieve this purpose, 3 models will be applied in this paper: they are model (1) redemption fees to expense ratios, model (2) measure of mutual fund’s performance, and model (3) redemption fees to mutual funds’ performance respectively. GLS regression method will be applied twice in this paper to examine the relationship between redemption fees and performance.