Do mutual fund investors realize gains too early?

• Main Authors: Chiu, Wen-Yi, 邱雯儀
• Other Authors: 陳鴻毅
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/7gk6ku

碩士 === 國立政治大學 === 財務管理研究所 === 105 === The main purpose of this study is to investigate the existence of the disposition effect, selling winners too early and holding losers too long, among mutual fund investors. Specifically, this study examines the relationship between the fund performance and fund flows to see whether mutual fund investors tend to realize their profits too early. Empirical results show that fund investors do not sell more mutual funds with positive returns than those with negative returns, while some fund investors tend to sell mutual funds with returns in the highest quintile group. In addition, this study finds that the high-return mutual funds sold by fund investors have higher expense ratios, indicating that the expense ratio may be one of the key factors of the selling decision of fund investors. Finally, in terms of the future performance, high-return mutual funds sold by fund investors perform worse than high-return mutual funds held by fund investors. This study, therefore, demonstrates that the tendency of selling winners in the mutual fund investment is under the consideration of the holding cost and future performance of mutual funds rather than the disposition effect of fund investors.