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

Arbeitspapier

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.

Object Details

• ISBN: 978-3-86558-615-5
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Paper Series 2 ; No. 2010,03

Classification and Topics

• Classification: Wirtschaft ; Financial Institutions and Services: General ; Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
• Subject: Mutual funds ; fund family ; flow-performance relationship ; Investmentfonds ; Institutioneller Anleger ; Anlageverhalten ; Portfolio-Management ; Aktienfonds ; Wertpapieranalyse ; Schätzung ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Jank, Stephan ; Wedow, Michael
• Event: Veröffentlichung
• (who): Deutsche Bundesbank
• (where): Frankfurt a. M.
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/36661
• Last update: 10.03.2025, 11:45 AM CET