Consumer Interest Rates and Retail Mutual Fund Flows
Consumer Interest Rates and Retail Mutual Fund Flows
In the absence of further guidance on the relative importance of the two argu- ments, our prior about the relative smartness of institutional versus individual money f lows remains neutral.With regard to the direction ofmoney f lows, there are at least two reasons to believe that investors’ fund sells have a weaker as- sociation with future performance than their fund buys. First, the disposition effect discussed in Odean (1998) suggests that sell decisions are generally not optimallymade. Secon