TY - JOUR
T1 - Average funds versus average dollars
T2 - Implications for mutual fund research
AU - Clifford, Christopher P.
AU - Jordan, Bradford D.
AU - Riley, Timothy B.
PY - 2014/9
Y1 - 2014/9
N2 - The top 5% of actively managed U.S. equity mutual funds in 2012 had greater aggregate TNA than the remaining 95% of funds combined. This skewness in size has implications for mutual fund research: What is true of the average fund is not necessarily true of the average dollar. We explore several key findings in the literature with an eye on this distinction. Our results indicate that if the goal of mutual fund research is to understand the importance of the industry to investors, then researchers should consider the experience of the average dollar, rather than the average fund.
AB - The top 5% of actively managed U.S. equity mutual funds in 2012 had greater aggregate TNA than the remaining 95% of funds combined. This skewness in size has implications for mutual fund research: What is true of the average fund is not necessarily true of the average dollar. We explore several key findings in the literature with an eye on this distinction. Our results indicate that if the goal of mutual fund research is to understand the importance of the industry to investors, then researchers should consider the experience of the average dollar, rather than the average fund.
KW - Flow convexity
KW - Mutual funds
KW - Smart money
UR - http://www.scopus.com/inward/record.url?scp=84907379299&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84907379299&partnerID=8YFLogxK
U2 - 10.1016/j.jempfin.2014.07.005
DO - 10.1016/j.jempfin.2014.07.005
M3 - Article
AN - SCOPUS:84907379299
SN - 0927-5398
VL - 28
SP - 249
EP - 260
JO - Journal of Empirical Finance
JF - Journal of Empirical Finance
ER -