Mutual Fund Performance Persistence and Competition: A Cross-Sector Analysis

Posted: 20 Jun 2005

See all articles by Aneel Keswani

Aneel Keswani

Faculty of Finance, Cass Business School, City University, London

David Stolin

Toulouse Business School - Economics and Finance

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Abstract

Existing work on mutual fund performance persistence obtains diverse results, depending on the group of funds studied. We examine whether performance persistence within a peer group of competing mutual funds depends on the group's composition. The UK mutual fund industry is ideal for such an examination because funds compete within strictly defined sectors. We consider several attributes related to the intensity of competition within a sector and use them to explain sector-level persistence. We find robust evidence that persistence is higher in sectors where concentration of assets under management is higher.

Keywords: Mutual funds, performance persistence, competition

JEL Classification: G23

Suggested Citation

Keswani, Aneel and Stolin, David, Mutual Fund Performance Persistence and Competition: A Cross-Sector Analysis. Journal of Financial Research, Forthcoming, Cass Business School Research Paper, Available at SSRN: https://ssrn.com/abstract=744427

Aneel Keswani

Faculty of Finance, Cass Business School, City University, London ( email )

106 Bunhill Row
London EC1Y 8TZ
Great Britain
+44 207 040 8763 (Phone)

David Stolin (Contact Author)

Toulouse Business School - Economics and Finance ( email )

20, bd Lascrosses - BP 7010
Toulouse Cedex 7, 31068
France

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