TY - JOUR
T1 - Comparing performance sensitivity of retail and institutional mutual funds’ investment flows
AU - Mazur, Mieszko
AU - Salganik-Shoshan, Galla
AU - Zagonov, Maxim
N1 - Publisher Copyright:
© 2017 Elsevier Inc.
PY - 2017/8/1
Y1 - 2017/8/1
N2 - 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.
AB - 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.
KW - Flow-performance relationship
KW - Institutional funds
KW - Mutual fund flows
KW - Performance evaluation
KW - Retail funds
UR - http://www.scopus.com/inward/record.url?scp=85008444991&partnerID=8YFLogxK
U2 - 10.1016/j.frl.2016.12.031
DO - 10.1016/j.frl.2016.12.031
M3 - Article
AN - SCOPUS:85008444991
SN - 1544-6123
VL - 22
SP - 66
EP - 73
JO - Finance Research Letters
JF - Finance Research Letters
ER -