However, the study found that trades that advisors make for their own accounts and for clients involve performance chasing and funds with high fees and excessive portfolio turnover.
Tucks Study Has Mixed Conclusion on Advisors’ Practices
A study by Tuck finance professors Brian Melzer and Juhani Linnainmaa has concluded that advisors’ trading for their own accounts is consistent with trades they make for clients, which implies that advisors aren’t conflicted when making decisions, according to the Tuck website.