Evidence from purchases and redemptions in the Spanish equity fund market

María Isabel Cambón Murcia and Ramiro Losada

CNMV Working Papers from CNMV- Spanish Securities Markets Commission - Research and Statistics Department

Abstract: CONTENTS:This article analyses the relationship between investment flows (subscriptions and redemptions) and the performance of Spanish equity investment funds. Empirical analysis reveals how investors in equity investment funds increase their subscriptions to high performing funds, while reducing their participation in funds that perform poorly. The main new element introduced by this study is an analysis of the relationship between investment flows and the performance of equity investment funds on retail and wholesale financial markets. One of the main conclusions from this analysis is that the sensitivity of retail investors to the performance of the poorest funds is less than for funds that have greater visibility. This finding could indicate that the managers of these funds are exercising a certain market power over their clients.

Keywords: Mutual funds; flows; performance; retail (search for similar items in EconPapers)
JEL-codes: G11 G23 (search for similar items in EconPapers)
Date: 2013
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