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Evidence from purchases and redemptions in the Spanish equity fund market

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  • María Isabel Cambón Murcia
  • Ramiro Losada

Abstract

CONTENTS:This article analyses the relationship between investment flows (subscriptions and redemptions) and the performance of Spanish equity investment funds. Empirical analysis reveals how investors in equity investment funds increase their subscriptions to high performing funds, while reducing their participation in funds that perform poorly. The main new element introduced by this study is an analysis of the relationship between investment flows and the performance of equity investment funds on retail and wholesale financial markets. One of the main conclusions from this analysis is that the sensitivity of retail investors to the performance of the poorest funds is less than for funds that have greater visibility. This finding could indicate that the managers of these funds are exercising a certain market power over their clients.

Suggested Citation

  • María Isabel Cambón Murcia & Ramiro Losada, 2013. "Evidence from purchases and redemptions in the Spanish equity fund market," CNMV Working Papers CNMV Working Papers no 56, CNMV- Spanish Securities Markets Commission - Research and Statistics Department.
    • Handle: RePEc:cnv:wpaper:dt_56en
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    References listed on IDEAS

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    More about this item

    Keywords

    Mutual funds; flows; performance; retail;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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