Size and Performance of Swedish Mutual Funds : Does Size Matter?

• Main Authors: Johansson, Tom, Jacobsson, Mattias
• Format: Others
• Language: English
• Published: Internationella Handelshögskolan, Högskolan i Jönköping, IHH, Företagsekonomi 2012
• Subjects: Fund size; performance; persistence; management fees
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:hj:diva-18994

In this thesis we have studied the relationship between mutual fund size and performance by studying 91 Swedish mutual funds during a six year period (2006-2011). Furthermore, we investigated the relationship between fund size and management fees and fund size and persistence in performance. The fund sample has been divided into five subgroups in order to compare and analyze funds with different fund sizes for the whole six-year period as well as two three-year sub periods. Our results are based on regressions and significance tests and for all the five subgroups and over the whole time period our results indicate that there is no significant relationship between fund size and fund performance that is robust over time. Our findings also show that there is no persistence in performance for any of the size-based fund groups which helps us to draw the conclusion that past performance is not a good measure for predicting future performance regardless of the size of the funds. The results also indicate that mutual funds with a larger asset base tend to have lower management fees than smaller funds.