The Study on Relationship among Research Resource, Portfolio Turnover, and Mutual Fund Performance
Date Issued
2015
Date
2015
Author(s)
Lin, Chia-Hua
Abstract
This paper examines the interaction between mutual fund performance and portfolio turnover by using 117 Taiwan domestic equity mutual funds data from the time period of 2005 to 2014. Empirical result indicates that funds with higher portfolio turnovers exhibit higher transaction costs and inferior performance compared with funds having lower turnovers. Furthermore, we use the data of 117 Taiwan General Equity Mutual Funds from 2010 to 2014 and 32 asset management firms to investigate the correlation among the research resource, mutual fund performance, and its portfolio turnover. We found that there is a significantly negative relationship between the research resource and portfolio turnover. Moreover, there is a positive relationship between the research resource and fund performance in corresponding period of time. The findings support the assumptions that fund managers who have more resources are easily to get information which can help them win excess returns. By getting useful information, fund managers can have less transaction costs, lower portfolio turnover and better fund performance.
Subjects
Mutual Fund
Fund Performance
Portfolio Turnover
Research Resource
Type
thesis