Mutual funds allow small savers to pool their resources and purchase diversified portfolios of assets with low

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Mutual funds allow small savers to pool their resources and purchase diversified portfolios of assets with low transaction costs. To see whether savers have taken advantage of these (and other) benefits, plot since 1980 mutual fund holdings (FRED code: MFTCMAHDFS) as a percentage of GDP (FRED code: GDP). Explain the pattern.

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Money Banking and Financial Markets

ISBN: 978-1259746741

5th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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