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Is quantitative and qualitative information relevant for choosing mutual funds?

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  • Otero-González, Luis
  • Durán-Santomil, Pablo

Abstract

Investors use ratings to make their investment decisions. In this paper we analyze whether the combination of qualitative and quantitative information allows the mutual funds to be identified that are able to beat their peers’. Our results show just a little evidence when we use ratings in isolation. The selection of mutual funds improves when we choose those with a positive Parent, Process and Price. Finally, the combination of Star (quantitative) and Analyst (qualitative) information as well as their pillars improves the screening of mutual funds.

Suggested Citation

  • Otero-González, Luis & Durán-Santomil, Pablo, 2021. "Is quantitative and qualitative information relevant for choosing mutual funds?," Journal of Business Research, Elsevier, vol. 123(C), pages 476-488.
    • Handle: RePEc:eee:jbrese:v:123:y:2021:i:c:p:476-488
    DOI: 10.1016/j.jbusres.2020.10.015
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    More about this item

    Keywords

    Mutual funds; Performance; Persistence; Ratings; Morningstar;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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