The mutual fund industry represents a substantial part of global financial markets with approximately 20 percent invested in mutual funds. Mutual funds offer a simple and easy-to-understand way to invest either into stocks or fixed income products, both for retail and institutional investors. This chapter provides an overview of the literature on the performance of actively and passively managed mutual funds with special emphasis on socially responsible funds. First, the chapter offers insights into the mutual fund industry worldwide and discusses the characteristics of active and passive management. Then the chapter discusses a prominent management style—SRI. The final sections review the efficiency of the mutual fund industry, performance measurements, and sources of returns and outperformance.
|Title of host publication||Mutual Funds and Exchange-Traded Funds|
|Subtitle of host publication||Building Blocks to Wealth|
|Editors||H. Baker, G. Filbeck, H. Kiymaz|
|Place of Publication||Oxford|
|Publisher||Oxford University Press|
|Publication status||Published - Dec 2015|
Barkó, T., & Renneboog, L. (2015). Mutual funds: Management styles, social responsibility, performance and efficiency. In H. Baker, G. Filbeck, & H. Kiymaz (Eds.), Mutual Funds and Exchange-Traded Funds: Building Blocks to Wealth (pp. 268-289). Oxford University Press.