DP6721 | Home Bias at the Fund Level

Publication Date

07/03/2008

JEL Code(s)

Keyword(s)

Programme Area(s)

Network(s)

Abstract

This paper presents new stylized facts on the distribution of the home bias at the fund level. We find (i) a large heterogeneity in the degree of home bias across mutual funds; (ii) a positive correlation between the size of funds and home bias; and (iii) a positive correlation between the size of funds, the number of foreign countries and the number of sectors in which they invest. These facts constitute a challenge for existing theories.