Family Matters: The Performance Flow Relationship in the Mutual Fund Industry

Kempf, Alexander; Ruenzi, Stefan

doi:10.2139/ssrn.549121

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Family Matters: The Performance Flow Relationship in the Mutual Fund Industry

26 Pages Posted: 10 May 2004

See all articles by Alexander Kempf

Alexander Kempf

University of Cologne - Department of Finance & Centre for Financial Research (CFR)

Stefan Ruenzi

University of Mannheim - Department of International Finance

Date Written: March 2004

Abstract

The relationship between the performance of mutual funds and their subsequent growth is examined. The focus of our paper is on the influence of the position of a fund within its family. So far only the influence of the position of a fund within its segment on its subsequent inflows has been considered. Our empirical study of the US mutual fund market shows that fund growth depends on the relative position of a fund within its segment and within its family. This leads to important incentives for fund managers.

Keywords: Mutual Funds, Fund Families, Performance Flow Relationship

JEL Classification: G23

Suggested Citation: Suggested Citation

Kempf, Alexander and Ruenzi, Stefan, Family Matters: The Performance Flow Relationship in the Mutual Fund Industry (March 2004). Available at SSRN: https://ssrn.com/abstract=549121 or http://dx.doi.org/10.2139/ssrn.549121