Do Chinese mutual fund investors chase returns?

• Main Authors: Du, Chen, Jin, Zheng, Teo, Ting Rui
• Other Authors: Nanyang Business School
• Format: Final Year Project
• Language: English
• Published: 2012
• Subjects: DRNTU::Business::Finance::Funds
• Online Access: http://hdl.handle.net/10356/48329
• Institution: Nanyang Technological University

On a comprehensive sample of Chinese open-end equity mutual funds from 2005 to 2009, we investigate the non-linear relationship between a fund’s flow and its past performance. We first observe a positive relationship between a fund’s quarterly flow and its prior 12-month return. Next, we find a non-...