The effect of the investment objects on the relationship between mutual fund performance and fund flow – The biotechnology mutual funds in Taiwan.

• Main Authors: Jaun-shien Wang, 王俊賢
• Other Authors: Wu Yih Suan
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/62923334398385061093

碩士 === 東吳大學 === 會計學系 === 93 === Abstract The focus of the research is on the behavior of investors who select biotechnology equity mutual funds. The empirical analysis indicates that investors who select these funds are more sensitive to performance than investors who select conventional funds. This study provides evidence that the heightened performance sensitivity reflects the biotechnology investment strategy. The samples of this research are the fund flow and the fund performance of biotechnology mutual funds and other global mutual funds in Taiwan. The ordinary least squares method (OLS) is used to validate hypothesis I and hypothesis II. The conclusions were as follows: 1. The fund flow of Global mutual funds which were not biotechnology mutual funds was affected by the fund performance slightly. 2. Fund flow of the biotechnology mutual funds were obviously affected by the last season fund performance. 3. The degree of fund flow affected by the biotechnology mutual fund performance had not changed from time to time. Based the conclusion, It can be inferred that the fund investors in Taiwan don’t seem to understand the biotechnology mutual fund very well. The investors invest on one biotechnology mutual fund entirely relying on the fund performance. They are very sensitive to the biotechnology mutual fund performance. The result indicates that investor consider the biotechnology mutual funds as luxury goods, not commodities. Before the investors learn more about the biotechnology mutual funds, this situation is not expected to be changed. This study also suggests a better strategy for the biotechnology mutual fund investors .They should be not buying and selling the biotechnology mutual funds so frequently, Frequent trading would usually mean losing the transaction cost. Holding for longer run and waiting for the fund manager to create the return would be a better strategy.