The impact of costs on risk and rates of return of debt investment funds
DOI:
https://doi.org/10.33119/SIP.2025.205.7Keywords:
investment funds, debt funds, management fees, investment risk, rates of returnAbstract
The article aims to assess how operating costs affect the performance and risk profile of debt investment funds. The authors conduct a comparative analysis of dependent and independent Polish investment funds using performance and risk indicators (e.g., beta, tracking error, Sharpe ratio). Results show that higher costs negatively impact returns and are associated with greater investment risk. However, the hypothesis that independent funds take higher risks than bank-related ones was not confirmed. The findings may help individual investors evaluate cost and risk factors in fund selection. The article’s uniqueness lies in its empirical comparison of debt funds in Poland, also based on their capital affiliation.
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