scholarly journals Distribution Fees and Mutual Fund Flows: Evidence from a Natural Experiment in the Indian Mutual Funds Market

2013 ◽  
Author(s):  
Santosh Anagol ◽  
Vijaya B. Marisetty ◽  
Renuka Sane ◽  
Buvaneshwaran Gokul Venugopal
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Natural Experiment ◽  
Fund Flows ◽  
Mutual Fund Flows

scholarly journals Does Sustainability Score Impact Mutual Fund Performance?

2019 ◽  
Vol 11 (10) ◽  
pp. 2972 ◽  
Author(s):  
Pablo Durán-Santomil ◽  
Luis Otero-González ◽  
Renato Heitor Correia-Domingues ◽  
Juan Carlos Reboredo
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Value At Risk ◽  
Fund Performance ◽  
Fund Flows ◽  
Socially Responsible ◽  
Equity Fund ◽  
Socially Responsible Investments ◽  
Mutual Fund Flows ◽  
European Equity

Given that sustainable investing constitutes a major force across global financial markets, in 2016 Morningstar began reporting Morningstar Sustainability scores. We used the 2016, 2017 and 2018 scores to study the effects of socially responsible investments (SRI) on European equity fund performance. Sustainability scores impacted positively on performance, which was consistent with the idea that the mutual funds invested in companies with better scores generate better risk-adjusted and not-risk adjusted performance. We also tested the relation on mutual fund flows and risk. The sustainability score in the previous year is significant on the flows, so higher-rated funds receive a larger volume of funds. In terms of risk, the level of sustainability is negatively related to the value at risk (VaR) of the fund, supporting that higher scored mutual funds offer better protection against extreme losses.

scholarly journals Capital markets in Central and Eastern Europe: two selected cases

2017 ◽  
Vol 11 (1) ◽  
pp. 597-606 ◽  
Author(s):  
Luminiţa Nicolescu ◽  
Florentin Gabriel Tudorache
Keyword(s):  
Financial Crisis ◽  
Mutual Funds ◽  
Capital Markets ◽  
Mutual Fund ◽  
Global Financial Crisis ◽  
Fund Flows ◽  
Past Performance ◽  
Individual Level ◽  
The Global Financial Crisis ◽  
Mutual Fund Flows

Abstract The evolution of mutual funds in terms of their inflows and outflows is seen as a good indicator of the capital markets’ performance in different countries. At individual level, investors substantiate their buying decisions on the past performance information and invest asymmetrically in funds with very good performance in the previous periods. Numerous studies, mainly conducted in US, illustrate that mutual fund flows are highly dependent on the funds’ previous performance, as a common behavior of investors resides in looking for highly performing funds than to get rid of poorly performing ones. This paper investigates the flows of funds into and out of Slovakian and Hungarian mutual funds during the period 2007-2014 and has as main purpose to analyze the behavior of investors in mutual funds in these two emerging financial markets. The analysis focuses on identifying patterns in investors’ decision making processes and on checking the similarity of their behavioral patterns and illustrating differences among the two. Given the peculiarities of the studied period, a financially turbulent period, the paper also tries to evaluate if and how the financial crisis affected the investing behavior of Slovakian and Hungarian investors, based on the evolution of inflows and outflows of funds in a period that comprises the global financial crisis and the present period in which recovery has started.

scholarly journals Runs on Money Market Mutual Funds

2016 ◽  
Vol 106 (9) ◽  
pp. 2625-2657 ◽  
Author(s):  
Lawrence Schmidt ◽  
Allan Timmermann ◽  
Russ Wermers
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Money Market ◽  
Fund Flows ◽  
Dynamic Interactions ◽  
Cross Sectional ◽  
Class Level ◽  
Money Market Mutual Funds ◽  
The Individual ◽  
Mutual Fund Flows

We study daily money market mutual fund flows at the individual share class level during September 2008. This fine granularity of data allows new insights into investor and portfolio holding characteristics conducive to run risk in cash-like asset pools. We find that cross-sectional flow data observed during the week of the Lehman failure are consistent with key implications of a simple model of coordination with incomplete information and strategic complementarities. Similar conclusions follow from daily models fitted to capture dynamic interactions between investors with differing levels of sophistication within the same money fund, holding constant the underlying portfolio. (JEL D14, G11, G23)

scholarly journals Seasonality In Mutual Fund Flows

2015 ◽  
Vol 31 (2) ◽  
pp. 715 ◽  
Author(s):  
Hyung-Suk Choi
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Investment Decisions ◽  
Cash Flows ◽  
Fund Flows ◽  
Equity Funds ◽  
Mutual Fund Flows ◽  
Net Flows

<p>In this paper I establish the presence of seasonality in cash flows to U.S. domestic mutual funds. January is the month with the highest net cash flows to equity funds and December is the month with the lowest net cash flows. The large net flows in January are attributed to increased purchases, and the small net flows in December are due to increased redemptions. Thus, the turn-of-the-year period is the time that most mutual fund investors make their investment decisions.</p>

scholarly journals Is the effect the same every January? Seasonality and Brazilian equity fund flows

2020 ◽  
Vol 31 (84) ◽  
pp. 409-424
Author(s):  
Janaína Cássia Grossi ◽  
Rodrigo Fernandes Malaquias
Keyword(s):  
Stock Market ◽  
Mutual Funds ◽  
Mutual Fund ◽  
Seasonal Pattern ◽  
January Effect ◽  
Seasonal Patterns ◽  
Fund Flows ◽  
Equity Mutual Funds ◽  
Equity Funds ◽  
Mutual Fund Flows

ABSTRACT Based on the assumption that seasonal patterns have been identified in stock market assets and also in the context of equity mutual funds, the aim of this research is to investigate the relationship between the seasonality presented by the January effect and the net flow of Brazilian equity funds. The study extends the potential effects of seasonality beyond the return on stock market assets, demonstrating that seasonal patterns can also be observed in Brazilian mutual fund flows. The literature mostly points to common factors related to the performance of equity mutual funds; therefore this study investigates mutual fund flows, demonstrating that different factors influence the decisions of fund investors, including seasonal factors. The study has practical implications for fund managers, as it highlights a set of variables that can be used to anticipate variations in fund flow, reducing their effects on performance and avoiding costs. The results were estimated using panel data regression analysis. The study sample consisted of 1,010 equity funds, covering the period from January of 2004 to June of 2018. It was found that the average net inflow of Brazilian equity mutual funds is higher in January than in other months of the year, which characterizes the existence of a seasonal pattern in their net flows. However, the effect is different between exclusive and non-exclusive funds. As contributions, our findings: (i) provide a better understanding about the factors related to investor decision-making; (ii) point out new aspects in which exclusive and non-exclusive funds differ; and (iii) present factors that influence mutual fund flows.

scholarly journals The Effect of Performance on Israeli Equity Fund Flows

2017 ◽  
Vol 6 (4) ◽  
pp. 272
Author(s):  
Ofer Arbaa ◽  
Eva Varon ◽  
Uri Benzion
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Investor Behavior ◽  
Fund Flows ◽  
Past Performance ◽  
Equity Fund ◽  
Equity Mutual Funds ◽  
The Us ◽  
Mutual Fund Flows ◽  
Net Flows

This paper examines the influence of past performance on Israeli equity mutual funds' net flows between January 2004 and July 2014, using the most recommended and reliable two-cluster regression methodology. Apparently, Israeli investors are more sensitive to risk adjusted returns than absolute returns and the most recent performance seems to be more influential on fund flows than on longer-term past performance. Moreover, investors flock to the latest winners and do not leave the funds with the poorest performance. The effect of past performance seems to be more salient on flows of advertised funds than of those with no advertisement.  The results in Israel augment the scant work on mutual fund flows outside the US and add support to a growing body of literature documenting irrational investor behavior worldwide. 

scholarly journals Seasonal Asset Allocation: Evidence from Mutual Fund Flows

2017 ◽  
Vol 52 (1) ◽  
pp. 71-109 ◽  
Author(s):  
Mark J. Kamstra ◽  
Lisa A. Kramer ◽  
Maurice D. Levi ◽  
Russ Wermers
Keyword(s):  
Risk Aversion ◽  
Mutual Funds ◽  
Asset Allocation ◽  
Mutual Fund ◽  
Capital Gains ◽  
Fund Flows ◽  
Flow Data ◽  
Equity Funds ◽  
Mutual Fund Flows ◽  
Investor Preference

We analyze the flow of money between mutual fund categories, finding strong evidence of seasonality in investor risk aversion. Aggregate investor flow data reveal an investor preference for safe mutual funds in autumn and risky funds in spring. During September alone, outflows from equity funds average $13 billion, controlling for previously documented flow determinants (e.g., capital-gains overhang). This movement of large amounts of money between fund categories is correlated with seasonality in investor risk aversion, consistent with investors preferring safer (riskier) investments in autumn (spring). We find consistent evidence in Canada and also in Australia, where seasons are offset by 6 months.

scholarly journals Analiza wpływu wybranych czynników na popyt na usługę zarządzania funduszem inwestycyjnym

Ekonomia ◽  
2018 ◽  
Vol 24 (2) ◽  
pp. 23-38
Author(s):  
Adam Łukojć ◽  
Iwona Białomazur
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Financial Statements ◽  
Fund Flows ◽  
Fund Management ◽  
Investment Performance ◽  
Main Factors ◽  
Mutual Fund Flows ◽  
Fund Size ◽  
The Impact

Analysis of the impact of selected determinants on the demand for mutual fund management servicesThe authors try to identify the main factors impacting the value of inflows to mutual funds in Poland. The inflows to mutual funds are compared to the following data: costs total expense ratios, investment performance in the current and previous year, and fund size. The data was collected from 451 financial statements of Polish mutual funds, for the years 2012–2016. The funds belong to three categories: bond, equity, small, and mid cap equity. The findings suggest that the connection between the funds fees — the price — and inflows to funds is relatively weak. Investment performance in the same year is the only factor that shows significant correlation with mutual fund flows.

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