Year: 2022
Type: article
Abstract: We develop a measure of mutual fund investment knowledge that complements existing fi- nancial literacy measures. Our question battery was administered to 3,444 survey respondents. We validate the index with factor analysis identifying two latent components, and descriptive regressions demonstrating the additive value of our index beyond general financial literacy in explaining variation in financial well-being, investment ownership, and fee calculation profi- ciency. Despite mutual funds’ importance in household savings, our index suggests that the public lacks adequate understanding of them. We demonstrate the utility of our index for studying selected decision and policy problems.
Source: Financial Services Review
Authors: Brian Scholl, Angela Fontes
Institutions: University of Chicago, National Opinion Research Center
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4388788317