Purchase and redemption decisions of mutual fund investors and the role of fund families
AbstractThis paper investigates the purchases and redemptions of a large cross-sectional sample of German equity funds. We find that investors punish bad performance by selling their shares, but also have a tendency to sell winners. Investors in large fund families show higher sales and redemption rates. Further family size also affects the flow-performance relationship: Investors in large families punish bad performance more. Last, we find that inner family rankings play an important part for redemptions, with investors strongly redeeming their shares from intra-family losers. --
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Bibliographic InfoPaper provided by University of Cologne, Centre for Financial Research (CFR) in its series CFR Working Papers with number 10-13.
Date of creation: 2010
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Mutual Funds; Fund Family; Flow-Performance Relationship;
Other versions of this item:
- Stephan Jank & Michael Wedow, 2013. "Purchase and redemption decisions of mutual fund investors and the role of fund families," The European Journal of Finance, Taylor & Francis Journals, vol. 19(2), pages 127-144, February.
- Jank, Stephan & Wedow, Michael, 2010. "Purchase and redemption decisions of mutual fund investors and the role of fund families," Discussion Paper Series 2: Banking and Financial Studies 2010,03, Deutsche Bundesbank, Research Centre.
- G20 - Financial Economics - - Financial Institutions and Services - - - General
- 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-2010-11-06 (All new papers)
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- Dötz, Niko & Weth, Mark, 2013. "Cash holdings of German open-end equity funds: Does ownership matter?," Discussion Papers 47/2013, Deutsche Bundesbank, Research Centre.
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