Investors are preoccupied with sales fees, when they should really be looking at funds’ operating expenses. That’s the conclusion of a report by a team from the University of Michigan and the University of California at the Berkeley and Davis campuses.

"Purchase decisions of mutual fund investors are influenced by attention-grabbing information," said Lu Zheng, assistant professor of finance at the University of Michigan business school. "Investors are more sensitive to in-your-face fees and are more likely to buy funds that attract their attention through exceptional performance, marketing or advertising."

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