Mutual funds efficiency comparison between U.S. and Europe

 Mutual funds are popular financial vehicles for small investors to access large investment opportunities through professional financial managers. The U.S. mutual fund industry is one of the most diverse and largest in the world but the question is it the most efficient. The European mutual fund industry have similar characteristics to the United States, both operating in sophisticated and well developed financial markets. However, in comparison the European mutual funds market may differ from the U.S. in its efficiency and cost. This paper looks at comparing the U.S. and European mutual fund industries in terms of their efficiency and cost. The methodology of Sharp, Treynor and Jensen efficiency measures are used to carry out an empirical test.