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Control of Luck in Measuring Investment Fund Performance

초록

영어

This paper applies an efficient method for Korean investment funds that controls luck in fund performance measurement and classification. Unlike US mutual funds, a large proportion of Korean investment funds are estimated to be skilled funds. Furthermore, the Korean investment fund industry does not show a conspicuous pattern of decline in the proportion of skilled funds over time as shown in the US. We address other issues around fund performance, for example, fund fees, efficient fund selection, and the choice of the asset pricing model. We also propose to measure fund performance on a relative basis.

목차

Abstract
 1. Introduction
 2. Methodology
  2.1. Systematic Inferential Error
  2.2. FDR Procedure
 3. Fund Performance Measurement and Fund Data
  3.1. Asset Pricing Model
  3.2. Investment Fund Data
 4. Empirical Results
  4.1. The Impact of Luck on Performance
  4.2. Fund Characteristics
  4.3. Persistence in Performance
  4.4. Performance Measured with Pre-expense Returns
  4.5. Performance Measured with Other Asset Pricing Models
  4.6. Relative Performance Measurement
 5. Conclusion
 References
 Figure
 Table

저자정보

  • Sangwon Suh Department of Economics, Chung-Ang University

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