AEI was founded to study economic policy. The Institute's goal today is to explore how free economies function, how to build on their strengths, how to keep private enterprise lively, and how to address problems when they arise. Although the Institute has expanded the scope of its research programs over the years, economic policy studies remain at its heart.
Mutual funds today manage $10 trillion in assets, more than the entire U.S. banking industry. Many Americans rely on mutual funds for their savings for retirement, college, and other long-term goals. Yet, as Competitive Equity argues, the current regulatory structure for mutual funds keeps costs for investors higher than they should be.
The problem is not too little regulation, but too much and of the wrong kind. The authors show how current government regulatory policy leads to de facto rate regulation by fund boards.
To restore competition, the authors recommend the creation of a new, alternative legal structure for collective investment, the "managed investment trust," which could eventually supplant traditional mutual funds, creating a more vibrant marketplace for investors.
"This book is essential reading for anyone who wishes to understand and evaluate the current regulatory regime in the mutual funds market. . . . Among the invaluable insights brought to our attention by this book is recognition that such an indefensible regulatory regime remains in the mutual funds industry."
--William Baumol, Harold Price Professor of Entrepreneurship and academic director of the Berkley Center for Entrepreneurial Studies in the Stern School of Business, New York University
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Resident Scholar
Kevin A. Hassett |
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Resident Scholar
Alan D. Viard |
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Resident Fellow
Alex J. Pollock |
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Editor-in-Chief of
The American
James K. Glassman |
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Resident Scholar
Philip I. Levy |
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Resident Fellow
Peter J. Wallison |
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