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The Times of India: Mutual funds exploit through higher fees investors who chase ‘stale returns’


Mutual funds are exploiting “unsophisticated” mutual fund investors who chase “stale returns” because they’re unable to distinguish between positive new results and the dropping of poor older results from the relevant reporting period, says research co-authored by Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School.

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