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INVESTMENT PERFORMANCE OF INTERNATIONAL MUTUAL FUNDS
Author(s) -
Droms William G.,
Walker David A.
Publication year - 1994
Publication title -
journal of financial research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.319
H-Index - 49
eISSN - 1475-6803
pISSN - 0270-2592
DOI - 10.1111/j.1475-6803.1994.tb00170.x
Subject(s) - fund of funds , mutual fund , closed end fund , investment (military) , open end fund , asset (computer security) , business , economics , monetary economics , finance , econometrics , institutional investor , market liquidity , corporate governance , computer security , politics , political science , computer science , law
In this paper we add several new perspectives to the growing body of empirical evidence on the investment performance of international mutual funds by applying a pooled cross‐sectional/time‐series regression methodology to a large data base over an extended period. Risk‐adjusted and unadjusted investment returns are not related to whether a fund is load or no‐load, and asset size, expense ratios, and turnover rates are not related to investment performance. We find no reward for paying a load fee when investing in mutual funds. It is noteworthy that performance is not affected by fund size, given the explosive growth of international mutual funds.