An empirical examination of the performance of real estate mutual funds 1990-2008

Authors

  • Abbay Kaushik Department of Accounting, Finance, and Business Law, Radford University
  • Anita K. Pennathur Department of Finance, Florida Atlantic University

DOI:

https://doi.org/10.61190/fsr.v21i4.4684

Keywords:

Stock selection ability, Real estate mutual fund, Mutual fund performance

Abstract

Empirical support for the evidence of over- or under-performance in real estate mutual funds is mixed. Using a sample covering the period 1990-2008, we provide a thorough investigation of the performance of real estate fund managers, including an examination of the impact of the down-market of 2007-2008. Our initial results show no over-performance for the overall period of 1990-2008; however, after accounting for the down-market period of 2007-2008, fund managers significantly out-perform the market for the 1990-2006 period. Thus, our results show that mutual fund investors can earn superior returns by investing in real estate mutual funds. Further, our cross-sectional results show that investors can earn higher returns by investing in funds that are large in size and rebalanced more frequently.

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Published

2012-12-31

How to Cite

Kaushik, A., & Pennathur, A. K. (2012). An empirical examination of the performance of real estate mutual funds 1990-2008. Financial Services Review, 21(4), 343–358. https://doi.org/10.61190/fsr.v21i4.4684

Issue

Vol. 21 No. 4 (2012): FSR Winter 2012

Section

New Original Submission

License

Copyright (c) 2012 Academy of Financial Services

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