RT Journal Article
SR Electronic
T1 The Effects of Knowledge, Gender, and Age on the Comprehension of Investment Disclosures
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 9
OP 19
DO 10.3905/jwm.2012.15.3.009
VO 15
IS 3
A1 Alex Wang
YR 2012
UL https://pm-research.com/content/15/3/9.abstract
AB This study examines how investors comprehend the disclosures regarding investment fees about a mutual fund through various factors: gender, age, education, and knowledge about investing in mutual funds. The results reveal that gender and knowledge influence investors’ perception of understanding investment disclosures, whereas knowledge, education, and age influence investors’ actual comprehension of the disclosures. In particular, age has an inverse effect on investors’ actual comprehension of the disclosures. Male investors may be overconfident in their ability to understand investment disclosures, whereas an educated and informed investor provides the best defense against costly mistakes in investing. Implications for wealth advisors are included.TOPICS: Wealth management, in wealth management, legal/regulatory/public policy, mutual funds/passive investing/indexing