Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 19, 2022 erstellt
Beschreibung:
We find that performance display can lead to capital misallocation. Mutual fund flows chase price returns (changes in net asset value per share or NAV return) that are widely displayed in practice, whereas the total return is the sum of the price return and fund distributions. NAV return chasing is observed across various share classes and evaluation horizons for performance and flows, and is not driven by alternative performance and risk measures. NAV return chasers forgo valuable investment opportunities. Finally, NAV return chasing generates price pressure on funds’ underlying stock holdings