Open AccessTests on the Relationship of Fund Performance and Net Fund Flow
Author(s) -
Hu Wei
Publication year - 2009
Publication title -
international journal of business and management
Language(s) - English
Resource type - Journals
eISSN - 1833-8119
pISSN - 1833-3850
DOI - 10.5539/ijbm.v3n8p14
Subject(s) - closed end fund , income fund , open end fund , business , fund of funds , net asset value , sovereign wealth fund , passive management , feeder fund , finance , institutional investor , economics , microeconomics , corporate governance , market liquidity , incentive
The relationship between net fund flow and performance of open-end funds was studied in this paper. The empirical tests on the performance and size of open-end funds in China show that the net fund flow of funds is positively correlated with pre-performance of funds, while the performance of funds is negatively correlated with the net fund flow of funds. These empirical studies imply that investors chose funds according to their historical performance, while the growing size decreases the funds’ capability of achieving excellent performance