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Funds with the highest costs produce the lowest returns, as client money is absorbed in charges and bid-offer spreads.
Michael Ossei, personal finance expert at comparison site uSwitch, says: "Cash Isa rates have plummeted and savers are getting the lowest returns in years.
When the academics compared the returns of the funds with their estimated trading costs, the funds with the highest costs had the lowest returns.
Buyers seem willing to consider moving away from standardized notes guaranteed by Freddie and Fannie, partly because those instruments now offer the lowest returns on record.
Detailed figures in the prospectus are likely to show that TSB is making some of the lowest returns among high street banks and is not expected to make profits or pay dividends until 2017.
In other words, the fastest-growing economies produced the lowest returns for shareholders.Emerging markets may not face the same risks as they did a decade ago, when hot money fled in response to the Asian crisis.
Similar(45)
BP gave the lowest return - 4.8percentnt - in the oil and gas sector, which averaged 9.7percentnt.
In January, the Janus Worldwide Fund had the lowest return of the 25 largest mutual funds, declining 4.7percentt, according to Bloomberg.
But the unit requires more capital than any other business and has the lowest return on equity target, at 17 percent.
Therefore, the task with the lowest return is supposed to be removed firstly (Table 2).
He recommends a cautious approach, which means accepting low returns for now in return for safety.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com