Mutual Fund Performance in an Emerging Market: Evidence for Vietnam

The performance of mutual funds is often measured by comparing the excess return of an active management with the returns of one or many benchmarks representing stock return characteristics. In this study, we examine three aspects of mutual fund performance, including performance in stock selection,...

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Main Author: Dinh, Khanh Duy
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2018
Subjects:
Online Access:https://eprints.nottingham.ac.uk/54646/
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author Dinh, Khanh Duy
author_facet Dinh, Khanh Duy
author_sort Dinh, Khanh Duy
building Nottingham Research Data Repository
collection Online Access
description The performance of mutual funds is often measured by comparing the excess return of an active management with the returns of one or many benchmarks representing stock return characteristics. In this study, we examine three aspects of mutual fund performance, including performance in stock selection, market timing abilities of fund managers and persistence in fund returns as well. Using a sample of 103 actively managed mutual funds which focus on Vietnamese equity portfolio from 2009 to 2017, we find evidence that neither stock selection nor market timing abilities are exhibited in fund returns and thus on average the mutual funds could not outperform the overall market. Regarding the persistence in mutual fund returns, we can only obtain evidence of the "icy hands" phenomenon in portfolios of last-year loser funds. For last year winner portfolios, there is no persistence in their performance so a strategy of buying good performers of the last-year is not favorable for those return-chasing investors.
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institution University of Nottingham Malaysia Campus
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spelling nottingham-546462022-09-05T15:50:10Z https://eprints.nottingham.ac.uk/54646/ Mutual Fund Performance in an Emerging Market: Evidence for Vietnam Dinh, Khanh Duy The performance of mutual funds is often measured by comparing the excess return of an active management with the returns of one or many benchmarks representing stock return characteristics. In this study, we examine three aspects of mutual fund performance, including performance in stock selection, market timing abilities of fund managers and persistence in fund returns as well. Using a sample of 103 actively managed mutual funds which focus on Vietnamese equity portfolio from 2009 to 2017, we find evidence that neither stock selection nor market timing abilities are exhibited in fund returns and thus on average the mutual funds could not outperform the overall market. Regarding the persistence in mutual fund returns, we can only obtain evidence of the "icy hands" phenomenon in portfolios of last-year loser funds. For last year winner portfolios, there is no persistence in their performance so a strategy of buying good performers of the last-year is not favorable for those return-chasing investors. 2018-09-13 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/54646/1/Duy_4303387.pdf Dinh, Khanh Duy (2018) Mutual Fund Performance in an Emerging Market: Evidence for Vietnam. [Dissertation (University of Nottingham only)] mutual fund performance market timing ability persistence in performance Vietnam
spellingShingle mutual fund performance
market timing ability
persistence in performance
Vietnam
Dinh, Khanh Duy
Mutual Fund Performance in an Emerging Market: Evidence for Vietnam
title Mutual Fund Performance in an Emerging Market: Evidence for Vietnam
title_full Mutual Fund Performance in an Emerging Market: Evidence for Vietnam
title_fullStr Mutual Fund Performance in an Emerging Market: Evidence for Vietnam
title_full_unstemmed Mutual Fund Performance in an Emerging Market: Evidence for Vietnam
title_short Mutual Fund Performance in an Emerging Market: Evidence for Vietnam
title_sort mutual fund performance in an emerging market: evidence for vietnam
topic mutual fund performance
market timing ability
persistence in performance
Vietnam
url https://eprints.nottingham.ac.uk/54646/