Purchase and redemption decisions of mutual fund investors and the role of fund families

Stephan Jank and Michael Wedow

No 2010,03, Discussion Paper Series 2: Banking and Financial Studies from Deutsche Bundesbank

Abstract: This paper investigates the purchases and redemptions of a large cross-sectional sample of German equity funds. We find that investors punish bad performance by selling their shares, but also have a tendency to sell winners. Investors in large fund families show higher sales and redemption rates. Furthermore, family size also affects the flow-performance relationship. On the one hand, investors in large families punish bad performance more, on the other, they also tend to sell winners more. Finally, we find that inner-family rankings play an important role for redemptions, with investors strongly redeeming their shares from intra-family losers.

Keywords: Mutual funds; fund family; flow-performance relationship (search for similar items in EconPapers)
JEL-codes: G20 G23 (search for similar items in EconPapers)
Date: 2010
References: View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Purchase and redemption decisions of mutual fund investors and the role of fund families (2013)
Working Paper: Purchase and redemption decisions of mutual fund investors and the role of fund families (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bubdp2:201003

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