Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/114472
Authors: 
Cici, Gjergji
Kempf, Alexander
Sorhage, Christoph
Year of Publication: 
2015
Series/Report no.: 
CFR Working Paper 12-09 [rev.5]
Abstract: 
Rationality would suggest that advice-seeking investors receive benefits from costly financial advice. However, evidence documenting these benefits for U.S. investors has so far been lacking. This paper is the first to document that U.S. mutual fund investors indeed receive one of the many previously hypothesized benefits associated with financial advice. The documented benefit comes from valuable tax-management advice that helps investors avoid taxable fund distributions and becomes even more valuable when investors face distributions that can cause large and hard-to-predict tax liabilities. Additional evidence suggests that financial advice helps with other aspects of tax management such as tax-loss selling.
Subjects: 
Mutual funds
Taxable fund distributions
Financial advisors
JEL: 
D14
G11
G24
H24
Document Type: 
Working Paper

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