Mutual Fund Growth in Standard and Specialist Market Segments

Ruenzi, Stefan

DOI:	https://doi.org/10.1007/s11408-005-3383-3
URL:	https://link.springer.com/article/10.1007%2Fs11408...
Weitere URL:	http://www.cfr-cologne.de/download/workingpaper/cf...
Dokumenttyp:	Zeitschriftenartikel
Erscheinungsjahr:	2005
Titel einer Zeitschrift oder einer Reihe:	Financial Markets and Portfolio Management
Band/Volume:	19
Heft/Issue:	2
Seitenbereich:	153-167
Ort der Veröffentlichung:	Berlin [u.a.]
Verlag:	Springer
ISSN:	1934-4554 , 1555-497X
Sprache der Veröffentlichung:	Englisch
Einrichtung:	Fakultät für Betriebswirtschaftslehre > Internat. Finanzierung (Ruenzi 2009-)
Fachgebiet:	330 Wirtschaft
Abstract:	This paper is concerned with differences in the performance-flow relationship (PFR) between standard and specialist market segments of the mutual fund industry. We expect differences in this relationship because investor characteristics might vary across different segments. Our results show that the PFR is more convex in standard segments than in specialist segments. Furthermore, investors in standard segments are less risk-averse and invest more in high-load funds than investors in specialist segments. Our findings are consistent with investors in standard segments being less sophisticated than investors in specialist segments and relying more heavily on the advice of financial brokers, which is compensated for by load fees.