Different demands for almost the same assets? Demographic structure's different effect on direct and indirect equity purchase

This study is motivated by the improved empirical framework of the Fourier flexible form estimation to investigate how the demographic structure leads to asymmetric effects on direct and indirect (mutual fund) equity demands. We find that, first, the demographic structure has asymmetric effects between direct and indirect equity purchases. Second, those in early old age create a stronger demand for indirect equity than other age cohorts in the middle of declining demand from young period. Third, we find theoretical and empirical evidence that direct and indirect equity demands respond asymmetrically to market risk aversion. Finally, we find evidence that bonds can substitute for indirect equity.