Title

Do fund flow-return relations depend on the type of investor? A research note.

Date of this Version

1-1-2013

Document Type

Journal Article

Publication Details

Citation only

Humphrey, J.E., Benson, K.L., & Brailsford, T.J. (2013). Do fund flow-return relations depend on the type of investor? A research note. Abacus: a Journal of Accounting and Business Studies, 49(1), 34-45.

Access the journal

2013 HERDC submission. FoR code: 150100

© Copyright, The Authors; Abacus, Accounting Foundation; The University of Sydney, 2012

ISSN

0001-3072

Abstract

This study investigates whether the relation between aggregate fund flow and market returns differs between retail and institutional funds. For the retail fund sample, we document a contemporaneous relation between flow and market returns and also find evidence of feedback trading. In contrast, there is little evidence of a relation between flow and market returns for the institutional fund sample. Consequently, it appears that retail and institutional fund investors use different investment strategies, with retail investors following a more naive strategy. We find no evidence of flow inducing price pressure for either type of fund.

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This document has been peer reviewed.