Mutual Fund Growth in Standard and Specialist Market Segments
AbstractWe examine differences in the performance flow relationship (PFR) between different segments of the fund industry. Such differences can be caused by distinct mutual fund investors’ characteristics in different segments. In our empirical study of the US equity mutual fund industry in 1993-2001, we find a much more convex PFR in standard segments than in specialist segments. Furthermore, our results suggest that investors in the latter are more fee- and risk-aware than investors in standard segments. Overall, these results hint at investors in specialist segments being more sophisticated than investors in standard segments. Our results should have serious implications for the management of investment companies and for the behavior of fund managers.
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Bibliographic InfoPaper provided by EconWPA in its series Finance with number 0406005.
Length: 23 pages
Date of creation: 14 Jun 2004
Date of revision: 27 Jun 2004
Note: Type of Document - pdf; pages: 23
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Mutual Funds; Performance Flow Relationship; Fund Growth; Investor Sophistication;
Other versions of this item:
- Stefan Ruenzi, 2005. "Mutual Fund Growth in Standard and Specialist Market Segments," Financial Markets and Portfolio Management, Springer, vol. 19(2), pages 153-167, August.
- Ruenzi, Stefan, 2005. "Mutual fund growth in standard an specialist market segments," CFR Working Papers 05-08, University of Cologne, Centre for Financial Research (CFR).
- G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-06-22 (All new papers)
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