Identification and Performance of Equity Mutual Funds with High Management Fees and Expense Ratios

2007 ◽  
Vol 16 (2) ◽  
pp. 32-51 ◽  
Author(s):  
John A. Haslem ◽  
H. Kent Baker ◽  
David M. Smith
Keyword(s):  
Mutual Funds ◽  
Management Fees ◽  
Equity Mutual Funds ◽  
And Performance

Manipulation and performance persistence: an examination of Iranian equity mutual fund performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahsa Hosseini ◽  
Mohammad Khodaei Valahzaghard ◽  
Ali Saeedi
Keyword(s):  
Mutual Funds ◽  
Performance Measures ◽  
Mutual Fund ◽  
Performance Measure ◽  
Performance Persistence ◽  
Content Type ◽  
Lower Tertile ◽  
Time Horizons ◽  
Equity Mutual Funds ◽  
And Performance

Purpose This paper aims to study manipulation and performance persistence in equity mutual funds. To this end, Manipulation-Proof Performance Measure (MPPM) and Doubt Ratio, along with a number of current performance measures are used to evaluate the performance of equity mutual funds in Iran. Design/methodology/approach The authors investigate performance manipulation by 1) comparing the results of the MPPM with the current performance measures, 2) checking the Doubt Ratio to detect suspicious funds. Additionally, the authors investigate performance persistence by forming and evaluating portfolios of the equity mutual funds at several time horizons. Findings The authors conclude that there is no evidence of performance manipulation in the equity mutual funds. Additionally, when comparing the performance of the upper (top) tertile portfolios and the lower tertile portfolios, in all of the studied 1, 3, 6 and 12-month horizons, the authors find performance persistence in the equity mutual funds. Originality/value To the best of the authors’ knowledge, this research is the first study to investigate the performance manipulation in the Iranian equity mutual funds, and also is the first study in Iran that uses the MPPM and the Doubt Ratio in addition to a number of current performance measures to investigate the performance persistence in the equity mutual funds at several time horizons.

scholarly journals Performance Evaluation of Investment (Mutual) Funds

2014 ◽  
Vol 15 (4) ◽  
pp. 398-407
Author(s):  
Povilas Vyšniauskas ◽  
Aleksandras Vytautas Rutkauskas
Keyword(s):  
Performance Evaluation ◽  
Mutual Funds ◽  
Historical Data ◽  
Investment Banks ◽  
Investment Fund ◽  
Practical Application ◽  
Management Fees ◽  
Proposed Model ◽  
And Performance ◽  
Main Components

The efficiency of an investment fund is one of the main components in evaluating the performance of the fund. This study seeks for introducing and comparing risk and performance evaluation ratios. The paper is aimed at testing the worked out ratios and at distinguishing between the best ones for the purpose of evaluating the performance of Lithuanian mutual funds. Scientific studies show that a standard deviation, alpha, beta, Sharpe and Treynor ratios are mostly employed for identifying the performance of mutual funds that are also compared with their benchmark index to establish if these funds are outperformed and if is it worth paying management fees to investment banks for managing mutual funds. Historical data were selected for the period from 2012-01-02 to 2013-10-15 analysing the prices of monthly funds. The paper points out the areas of a practical application of the proposed model for investment fund valuation, which may not only provide valuable outcomes for practitioners but also may inspire further research on this article.

scholarly journals An Analysis of the US Mutual Funds Sector: What Determines Performance?

2016 ◽  
Vol 5 (1) ◽  
pp. 59-74
Author(s):  
Faisal Mahmood ◽  
Ghulame Rubbaniy Ghulame Rubbaniy
Keyword(s):  
Mutual Funds ◽  
Negative Impact ◽  
Monthly Data ◽  
Management Fees ◽  
Equity Mutual Funds ◽  
The Us

This paper analyzes the performance of equity mutual funds in the US, using monthly data for a sample of 4,431 equity mutual funds over the period 1999–2012. Our empirical findings suggest that larger funds with higher liquidity and turnover generate higher returns, while expenses and management fees have a negative impact on performance.

scholarly journals The Performace Comparation in Indonesia: Conventional Mutual Funds vs Sharia Mutual Funds

2020 ◽  
Vol 1 (5) ◽  
pp. 295-312
Author(s):  
Apriadi Herlambang
Keyword(s):  
Mutual Funds ◽  
Selection Criteria ◽  
Sampling Method ◽  
Stock Exchange ◽  
Sample Selection ◽  
Equity Mutual Funds ◽  
Significant Difference ◽  
Equity Funds ◽  
Sample Test ◽  
And Performance

This study aims to see, whether or not there is a reference to the performance of conventional and Islamic mutual funds in Indonesia with the Sharpe Index, Treynor Index and Jensen Index. The population of this research is Conventional Equity Mutual Funds and Sharia Equity Mutual Funds which are listed on the Indonesia Stock Exchange. Sampling was carried out using proposive judgment sampling method, namely the selected sample was invincible with predetermined selection criteria. The sample chosen is the monthly NAB of Islamic and conventional equity funds that were effective before January 1, 2016 and actively working until December 31, 2018, this is intended to obtain the latest information on the performance of equity mutual funds. Based on the sample selection criteria, it is obtained 20 mutual funds for conventional category stocks and 13 mutual funds for Islamic stocks that are active and publish their monthly NAB during the study period. This hypothesis testing is done in a comparative way, namely data analysis is done by using the Independent Sample T-Test. This analysis is carried out by comparing the returns, risks, and performance of conventional and Islamic mutual funds. Based on the results of the Independent Sample Test, it shows that there is a significant difference between the performance of Islamic equity funds and conventional equity funds using the Sharpe Index, Treynor Index and the Jensen Index

scholarly journals Performance, Expenses and Funds Flows: Evidence from the Greek Mutual Fund Market

2014 ◽  
Vol 3 (1) ◽  
pp. 292-307
Author(s):  
Gerasimos G Rompotis
Keyword(s):  
Mutual Funds ◽  
Capital Markets ◽  
Mutual Fund ◽  
Economies Of Scale ◽  
Negative Relationship ◽  
Flow Reduction ◽  
Expense Ratio ◽  
Developed Markets ◽  
Equity Mutual Funds ◽  
And Performance

This paper examines the factors that affect performance, expense ratios and flows of Greek equity mutual funds during 2002-2005 and provides possible explanations for the rare phenomenon of a stagnated mutual fund market in the midst of growing capital markets in Greece and elsewhere. Results demonstrate strong economies of scale for expenses, a negative relationship between performance and expense ratio, funds flow reduction (increase) with increases in expenses (fund age and fund family), and a significant unexplained portion of funds flows. Also discovered is the inadequate competition due to large load fees and expense ratios of two to three times greater than those in other developed markets and a tradeoff between expense ratio and performance of 1.45 instead of 1 which has been observed in the literature.

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