Investment flows: Retail versus institutional mutual funds

Research output: Contribution to journalArticlepeer-review

13 Scopus citations

Abstract

In this study, I compare the fund selection criteria used by investors in retail mutual funds with the criteria of investors in institutional mutual funds. I show several differences in investment flow patterns between retail and institutional funds, which are consistent with differences in investor profiles of the two types of funds. More specifically, compared with investors of retail mutual funds, clients of institutional mutual funds use more quantitatively sophisticated criteria such as risk-adjusted return measures and tracking error, demonstrate stronger momentum-driven and herding behaviors, and are less sensitive to fund expense ratio.

Original languageEnglish
Pages (from-to)34-44
Number of pages11
JournalJournal of Asset Management
Volume17
Issue number1
DOIs
StatePublished - 1 Jan 2016

Keywords

  • fund flows
  • institutional funds
  • investment decisions
  • mutual funds
  • performance evaluation
  • retail funds

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Information Systems and Management

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