Student-managed investment funds: seven mismatches and three recommendations

Abstract

Purpose: The purpose of this paper is to investigate the embedded challenges of student-managed investment funds (SMIFs) and provide recommendations to work with these issues. Design/methodology/approach: The paper analyzes and critiques the ways SMIFs are structured and operated and makes several suggestions. Findings: The paper details seven unique challenges of SMIFs compared to professionally managed investment funds. The source of these challenges is that SMIFs are set up for educational purposes, which makes the operation and management different from performance-focused investment funds. The paper proposes several recommendations on how to align the educational focus with fund performance. Originality/value: The paper is original and based on primary research.