Mutual fund plays a crucial role on bringing stability to the financial system and efficiency resource allocation. It provides novel way of mobilizing from small investors allowing them participate in equity other securities industrial organization with low risk. A mutual is ideal investment vehicle for today’s complex modern scenario, there has been growing importance funds India, when compare...

This paper proposes and tests a flow-based explanation for three important empirical findings on return predictability – the persistence of mutual fund performance, the “smart money” effect, and stock price momentum. Since mutual fund managers generally scale up or down their existing positions in response to investment flows, and since the portfolios of funds receiving capital generally differ...