Will investors change their superannuation fund given the choice?

T. Fry, Richard Heaney, W. McKeown

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20 Citations (Scopus)
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A large number of Australian investors have been granted the right to choose where their superannuation fund contributions will be invested, but it is difficult to ascertain whether investors will exercise this choice. Although expectedutility-maximizing investors might tend to change their fund once given the choice, loss averse investors would favour the status quo. Using a survey of over 1600 Australian investors, conducted by FinaMetrica in early 2005, we find support for inertia (status quo) in our sample suggesting that, with respect to superannuation choice, individual Australian investors are loss averse.
Original languageEnglish
Pages (from-to)267-283
JournalAccounting and Finance
Issue number2
Publication statusPublished - Jun 2007

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