A survey of mutual fund fees and expenses in Thailand

Abstract

Purpose

The purpose of this research is to supply basic statistics of fees and expenses charged by mutual funds in Thailand, and to investigate the economic determinants of the variations in these charges.

Design/methodology/approach

The authors construct an original dataset on characteristics of Thai mutual funds from annual reports filed between 2005 and 2007, and then use statistical analysis to investigate variations in fees and expenses.

Findings

Funds that are small, entail higher risk, and offer special income tax benefits charge higher fees and expenses. Bond funds that produce high returns on investment tend to charge significantly lower fees and expenses when compared to those that produce low returns.

Practical implications

Statistics from the gathered data can help investors better evaluate Thai mutual funds. Determinants of variations in the fees and expenses can yield useful insights for policy makers regarding the competition and efficiency of the asset management industry.

Originality/value

This paper adds to a small but growing literature that investigates characteristics of the asset management industries outside of the United States and Europe.

Citation

Na Lamphun, P. and Wongsurawat, W. (2012), "A survey of mutual fund fees and expenses in Thailand", International Journal of Emerging Markets, Vol. 7 No. 4, pp. 411-429. https://doi.org/10.1108/17468801211264324