Are There Disadvantaged Clienteles in Mutual Funds?

60 Pages Posted: 8 Jun 2016

Date Written: 2010

Abstract

This paper studies the flow-performance relationship of three different investor groups in mutual funds: Households, financial corporations, and insurance companies and pension funds, establishing the following findings: Financial corporations have a strong tendency to chase past performance and also hold an increased share in the top performing funds. Insurance companies and pension funds show some evidence of performance chasing, but are underrepresented in the best performing funds. Households chase performance, but they are also subject to status quo bias in their flows. Regarding investor composition the worst performing funds show no significant difference in their investor structure when compared to funds with average performance.

Keywords: Mutual Funds, Flow-Performance Relationship, Clientele

JEL Classification: G11, G20, G23

Suggested Citation

Jank, Stephan, Are There Disadvantaged Clienteles in Mutual Funds? (2010). Bundesbank Series 2 Discussion Paper No. 2010,11, Available at SSRN: https://ssrn.com/abstract=2794053 or http://dx.doi.org/10.2139/ssrn.2794053

Stephan Jank (Contact Author)

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
48
Abstract Views
647
PlumX Metrics