Empirical evidence collected from a variety of shareholder surveys suggests that mutual fund shareholder redemption activity is not nearly as worrisome as the 40.9 percent rate of redemptions recorded in 2000 might indicate, according to a report issued last week by the Investment Company Institute.

With no direct data available on shareholder's holding periods, funds' rates of redemption have often been used to estimate shareholder redemption activity, according to the ICI. However, redemption rates are often not reflective of the average shareholder's holding period because a few shareholders account for the greatest percentage of redemptions.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.