The Mismatch Between Mutual Fund Scale and Skill

Volume: 75, Issue: 5, Pages: 2555 - 2589
Published: Oct 1, 2020
Abstract
I demonstrate that skill and scale are mismatched among actively managed equity mutual funds. Many mutual fund investors confuse the effects of fund exposures to common systematic factors with managerial skill when allocating capital among funds. Active mutual funds with positive factor‐related past returns thus accumulate assets to the point that they significantly underperform. I also show that the negative aggregate benchmark‐adjusted...
Paper Details
Title
The Mismatch Between Mutual Fund Scale and Skill
Published Date
Oct 1, 2020
Volume
75
Issue
5
Pages
2555 - 2589
Citation AnalysisPro
  • Scinapse’s Top 10 Citation Journals & Affiliations graph reveals the quality and authenticity of citations received by a paper.
  • Discover whether citations have been inflated due to self-citations, or if citations include institutional bias.