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Title: Does the less sophistication investors intended to prefer simple signals to choose mutual fund Authors:  Jinge Fu - University of Glasgow (United Kingdom) [presenting]
Abstract: It is shown that investors tend to use some simple signal (Morningstar rating) as an indicator when they doing a mutual fund invest. Two tests have been used to prove our results. Using proxies for investor sophistication (distribution channels, and periods of investor sentiment), we prove that sophisticated investors will consider complex factor models when assessing a fund managers skill. We also investigate which factor investors focused on by using flow and factor-alpha.