Mutual fund objective misclassification

Moon Kim, Ravi Shukla, Michael Tomas

Research output: Contribution to journalArticlepeer-review

38 Scopus citations


Mutual funds are usually classified based on their stated objectives. If the stated objectives are not the actual objectives the funds pursue, conclusions drawn by investors and researchers based on the stated objectives will be misleading. This study classifies funds based on their attributes (characteristics, investment style, and risk/return measures). We find that the stated objectives of more than half the funds differ from their attributes-based objectives, and over one third of the funds are severely misclassified. However, contrary to the reports in the financial press, we do not find that mutual funds are gaming their objectives, i.e., deviating from their stated objectives to earn a higher relative performance ranking.

Original languageEnglish (US)
Pages (from-to)309-323
Number of pages15
JournalJournal of Economics and Business
Issue number4
StatePublished - 2000


  • Investment objectives
  • Mutual funds

ASJC Scopus subject areas

  • General Business, Management and Accounting
  • Economics and Econometrics


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