Mutual Fund Flow and Active Management: Evidence from U.S. Equity Funds

• Main Authors: Lee, Wei-Hsuan, 李韋萱
• Other Authors: 陳鴻毅
• Format: Others
• Language: en_US
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/56ya2z

碩士 === 國立政治大學 === 財務管理學系 === 106 === This study investigates whether the mutual fund manager can manage assets in an efficient way. Using active share as a measure of the efficiency of asset allocation for a mutual fund, this study finds that the active share of a mutual fund increases if the fund experiences an inflow or an outflow. Specifically, the active share is more sensitive to fund inflow than outflow, indicating, relative to obtaining more funds from investors, the fund manager cannot efficiently manage their assets when he faces the redemption of investors. Furthermore, there is no performance persistence in mutual funds. If the fund experienced an inflow or an outflow, whether the mutual fund managers manage assets in an efficient way, it is difficult for fund managers to outperform the markets in the future.