Comparing performance sensitivity of retail and institutional mutual funds’ investment flows

Mieszko Mazur, Galla Salganik-Shoshan, Maxim Zagonov

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

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 languageEnglish
Pages (from-to)66-73
Number of pages8
JournalFinance Research Letters
Volume22
DOIs
StatePublished - 1 Aug 2017

Keywords

  • Flow-performance relationship
  • Institutional funds
  • Mutual fund flows
  • Performance evaluation
  • Retail funds

ASJC Scopus subject areas

  • Finance

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