This paper highlights the procyclical and unstable behaviour of mutual funds, characterized by a varying sensitivity on common asset pricing factors. It proposes novel factor model that allows for regime changes associated with macroeconomic financial state variables. Estimated panel covering 825 US equity funds over period 30 years, it appears yield curve, dividend yield, short term interest r...

Though there are numerous financial assets in our capital market for the investors to invest their money attainment of more return, Mutual Funds play a predominant role acting as most favorable asset increase wealth by offering schemes. Investors who eyeing on mix various one single scheme can consider investing hybrid funds. That is why we conducting study selected mutual types funds have take...

Mutual funds have become the most popular products for diversity of investment, since they are able to disperse investment risks to the smallest degree. In selecting mutual funds, the past performance of funds plays a central role in the expectations of the future performance of funds. In 2008, the U.S. sub-prime broke out; numerous investors lost more than half of the capitals donated. Therefo...

Despite its importance, voting in the elections of corporate boards of directors remains relatively unexplored in the empirical literature. We construct a comprehensive dataset of 3,204,890 mutual fund votes in director elections that took place between July 2003 and June 2005. We …nd substantial systematic heterogeneity in fund voting patterns: some mutual funds are management friendly, and ot...

Defined contribution plans, predominantly 401(k)s, are the primary source of personal retirement savings for American workers, making the investment decisions within these accounts a salient policy concern. These decisions are a result of two separate actions: the mutual fund options selected by the employer’s plan administrator and the specific funds chosen by the participant. While considerab...

In this paper we analyze the influence of market climates on mutual fund Sharpe ratios. First, in a theoretical analysis based on a common factor model in performance analysis, we show that a significant bias results from market climate – in addition to the obvious influence of fund management performance. Market climate is determined by the random mean and standard deviation of market excess r...