Investors' Risk Profiles Key in Predicting Mutual Fund Switching Behavior.
Investors consider factors like risk, fund performance, and investment mix before switching mutual funds. A model was developed to predict investor switching behavior based on their risk profile. Mutual funds have grown significantly, but many underperform due to frequent switching by investors. The study aims to understand why investors switch funds or stay with a particular fund. Investors in nonemployer plans may behave differently from those in both employer and nonemployer plans.