The flow-performance relationship around the world

Miguel A. Ferreira, Aneel Keswani, Antonio F. Miguel, Sofia B. Ramos

Research output: Contribution to journalArticlepeer-review

132 Citations (Scopus)


We use a new dataset to study how mutual fund flows depend on past performance across 28 countries. We show that there are marked differences in the flow-performance relationship across countries, suggesting that US findings concerning its shape do not apply universally. We find that mutual fund investors sell losers more and buy winners less in more developed countries. This is because investors in more developed countries are more sophisticated and face lower costs of participating in the mutual fund industry. Higher country-level convexity is positively associated with higher levels of risk taking by fund managers.

Original languageEnglish
Pages (from-to)1759-1780
Number of pages22
JournalJournal of Banking and Finance
Issue number6
Publication statusPublished - 1 Jun 2012


  • Convexity
  • Flow-performance relationship
  • Mutual fund flows
  • Mutual funds


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