Are higher fees justified by superior performance ? Evidence from Belgian mutual funds
Veithen, Joan
Promotor(s) : Bazgour, Tarik
Date of defense : 23-Jun-2016/28-Jun-2016 • Permalink : http://hdl.handle.net/2268.2/1248
Details
Title : | Are higher fees justified by superior performance ? Evidence from Belgian mutual funds |
Author : | Veithen, Joan |
Date of defense : | 23-Jun-2016/28-Jun-2016 |
Advisor(s) : | Bazgour, Tarik |
Committee's member(s) : | Berners, David
Sougné, Danielle |
Language : | English |
Discipline(s) : | Business & economic sciences > Finance |
Institution(s) : | Université de Liège, Liège, Belgique |
Degree: | Master en sciences de gestion, à finalité spécialisée en Banking and Asset Management |
Faculty: | Master thesis of the HEC-Ecole de gestion de l'Université de Liège |
Abstract
[en] In this study, I use a data sample consisting of open-end equity mutual funds from the Belgian mutual fund market over the period 2005-2015. Previous literature found mainly that fund performance is negatively related to the expense ratio and positively related to total fund assets. My findings confirm that there is a statistically significant negative relationship between performance and expenses, indicating inefficient use of resources. In addition, I determine a significant positive relation between performance and total assets. This results suggests economies of scales in larger funds. Furthermore, I find that mutual funds generally underperform the market. Moreover, I do not find any correlation between age, front loads, rear loads and performance. In conclusion, investors are better off buying funds with lower expense ratios.
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