Abstract How can fragility be averted in open-end mutual funds? In recent years, markets have observed an innovation that changed the way funds are priced. Alternative pricing rules (known as swing pricing) adjust funds’ net asset values to pass on trading costs transacting shareholders. Using unique data investor-level transactions U.K. corporate bond funds, we show eliminates first-mover adva...

Mutual fund sectors are one of the fastest growing sectors in Indian economy that have potential for sustained future growth. Mutual funds make saving and investing simple and affordable. Anybody with an investible surplus of as little as a few hundred rupees can invest in mutual funds. The Indian Mutual Fund industry has already opened up many exciting investment opportunities to Indian invest...

We find significant relations between active mutual fund portfolio holdings and executive compensation, which appear to be largely driven by mutual fund investment styles rather than monitoring behaviour. Aggressive growth fund holdings are associated with performance pay, while income fund holdings are negatively related. We also find that mutual fund holdings are insensitive to changes in exe...

Mutual funds are usually classified based on their stated objectives. If the stated objectives are not the actual objectives the funds pursue, conclusions drawn by investors and researchers based on the stated objectives will be misleading. This study classifies funds based on their attributes (characteristics, investment style, and risk/return measures). We find that the stated objectives of m...

We study standard mutual fund performance measures, using simulated funds whose characteristics mimic actual funds. We find that performance measures used in previous mutual fund research have little ability to detect economically large magnitudes ~e.g., three percent per year! of abnormal fund performance, particularly if a fund’s style characteristics differ from those of the value-weighted m...

As the largest part of mutual fund, open-end funds play a critical role in Chinese fund market. In this work, we construct an undirected weighted network based on asset co-holding and explore whether funds’ co-holdings influence their net flows. The structure traits are introduced into panel data model to examine impact flow changes. It is revealed that when has more connections with other fund...