Equity Fund Size and Growth
Implications for Performance and Selection
DOI:
https://doi.org/10.1016/S1057-0810(96)90023-2Abstract
Should individuals choose the largest or smallest equity jimisfor investment? This study explores the relationship of equityfind size to pe$ormance. Historical returns of largejiouis are found to be superior to their smaller peers. Yesterday’s best peforming funds tend to become to&y’s largestjkds as individuals invest heavily in response to the communications about the fund’s past success. But thefindings suggest that, once large, equity jimak do not outperform their peers. Especially for jima!s in aggressive growth objectives, the advantages of being small appear to outweigh the disadvantages. For individual investors wtih aggressive growth objectives, a strategy of investing in smallerjiouis may thus be wealth maximizing.
Downloads
Downloads
Published
Issue
Section
License
Copyright (c) 1996 JAI Press Inc.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Author(s) retain the copyright and full publishing rights without restriction.
Author(s) grant the Journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial 4.0 International License that allows reusers to distribute, remix, adapt, and build upon the material in any medium or format, for noncommercial purposes only. Reusers must acknowledge the work's authorship and initial publication in this Journal.
Noncommercial means not primarily intended for or directed towards commercial advantage or monetary compensation.
In addition, FSR grants to the UGA Libraries a worldwide, non-exclusive license to all content published by the Journal, including metadata, that is necessary to publish, transmit, and index the Journal and to preserve its content over time.
