Fund Names vs. Family Names: Implications for Mutual Fund Flows
46 Pages Posted: 4 May 2020 Last revised: 29 Jul 2021
Date Written: April 7, 2020
An emerging literature has shown that investors are sensitive to mutual fund names. Using a sample of US equity funds over the period 1993-2017, we provide evidence that funds with a name closer to the family’s name attract more flow and display a stronger performance-flow relationship. This name bias is stronger among old and large fund families, and retail funds. Our results are in line with the literature on social biases and costly searches, and show that seemingly innocuous differences in fund attributes – such as fund names – translate into significant differences in investor decisions.
Keywords: Mutual Fund Flows, Fund Names, Behavioral Biases, Fund Families
JEL Classification: G02, G11, G23
Suggested Citation: Suggested Citation