Overconfidence of Investment Managers and the Performance Assessment Indexes of Mutual Funds

• Main Authors: Hasan Ghalibaf-Asl, Malihe Kordi, Fatemeh Ajdari
• Format: Article
• Language: fas
• Published: Alzahra University 2013-06-01
• Series: راهبرد مدیریت مالی
• Subjects: Overconfidence; Mutual Fund Transaction Ratio; Mutual Funds Risk; Mutual Funds Return; Portfolio Diversification Ratio
• Online Access: http://jfm.alzahra.ac.ir/article_953_ebd94f5e52dbd03285f005723b8b5e72.pdf

To assess the performance of mutual funds, this research uses the indexes of risk, return, portfolio diversification & transaction activity ratio. For the purpose of investigating the relationship between the overconfidence of investment managers and the performance assessment of mutual funds, a sample of investment managers of 37 mutual funds was taken. The derived results from analyzing the data by Pearson correlation show that between the overconfidence of investment managers and risk, return, portfolio diversification, the ratio of transaction activity of mutual fund, there exist meaningful direct relation, meaningful reverse relation, and meaningful direct relation, respectively. The results of this research show that overconfidence of men is more than women, and that as the experience, education and age of people increase, their overconfidence decreases. But, in terms of better than average effect and wrong calibration, from the point of general knowledge, no meaningful (significant) difference was observed, among different age group .