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How Selective Advertising by Mutual Funds Misleads Investors

Professor Ahmed Taha

Ahmed Taha's research focuses on the regulation of consumer financial products and empirical studies of the behavior of judges and litigants.

Mutual fund companies attract investors with performance advertisements, which highlight a fund’s past returns.  The funds featured in performance advertisements are not randomly selected. 

Instead, advertisements announce funds that have performed well in the past.  You will never see a performance advertisement for a poorly-performing fund, Professor Ahmed Taha writes in his latest column on Forbes.com.

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