Many different motivations for investing in mutual funds have been provided in the literature, including the claim that managers of mutual funds have special abilities that can be used to outperform the market. Testing of the validity of these claims is complicated by two facts. First, the expected returns on mutual funds show cross-sectional as well as time series variation. Second, mutual funds that did not do very well in the past tend to stop trading more often than other funds. The latter implies that an analysis of returns on mutual funds that are currently traded is possibly affected by so-called survivorship bias. The aim of this thesis is to use longitudinal econometric techniques to test the validity of some of the motivations for investing in mutual funds that have been given in the literature.
|Qualification||Doctor of Philosophy|
|Award date||20 Nov 1998|
|Place of Publication||Tilburg|
|Publication status||Published - 1998|