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Embracing risk: a new approach to mutual fund ratings
10/16/2025
In the world of mutual fund (MF) investment, the traditional assumption that all investors are inherently risk-averse is being challenged by research. The study by Tiantian REN (Xiangtan University), Kristiaan KERSTENS (IÉSEG, UMR 9221), and Saurav KUMAR (Indira Gandhi Institute of Development Research), brings a fresh perspective by proposing to incorporate “risk-loving” preferences into the ratings of mutual funds. The aim of their work is to contribute to new tools for evaluating and selecting funds, catering to a broader spectrum of investor preferences.