Abstract
In this paper, we examine and compare the form of the flow-performance relationship for U.S. retail and institutional mutual funds. We provide evidence that the convex form of the flow-performance function documented by previous research characterizes mostly the relationship in the upper region of the performance scale. In contrast, the flow-performance relationship for the low-performance region appears to be concave. Furthermore, we document that the observed convexity is more pronounced for retail funds, while the concavity can be mainly attributed to institutional funds.
Original language | American English |
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Pages (from-to) | 66-73 |
Number of pages | 8 |
Journal | Finance Research Letters |
Volume | 22 |
DOIs | |
State | Published - 1 Aug 2017 |
Keywords
- Flow-performance relationship
- Institutional funds
- Mutual fund flows
- Performance evaluation
- Retail funds
All Science Journal Classification (ASJC) codes
- Finance