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

Stephan Jank and Michael Wedow

No 10-13, CFR Working Papers from University of Cologne, Centre for Financial Research (CFR)

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. Further family size also affects the flow-performance relationship: Investors in large families punish bad performance more. Last, we find that inner family rankings play an important part 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:cfrwps:1013

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