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Mutual Fund Flows and Benchmark Portfolio Returns

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  • Joakim Kvamvold

    (Department of Economics, Norwegian University of Science and Technology, Dragvoll, N-7491 Trondheim, Norway.)

Abstract

I examine trading caused by net flows to mutual funds invested at the Oslo stock exchange. My results show that trading by index-linked mutual funds and actively managed funds are correlated with returns on different segments of the stock exchange. Neither investor sentiment, nor feedback trading explain this correlation. I argue that information cannot explain the results. Hence, I provide evidence that changes in demand matters for stock prices.

Suggested Citation

  • Joakim Kvamvold, 2017. "Mutual Fund Flows and Benchmark Portfolio Returns," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 236-242.
    • Handle: RePEc:eco:journ1:2017-02-32
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Mutual Funds; Investment Flows; Portfolio Returns;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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