Localized competition, participation costs and mutual fund ...

The convex relationship between mutual fund flows and performance found in literature (Ippolito (1992), Chevalier and Elison (1997), Sirri and Tufano (1998), Kempf and Ruenzi (2004)), where the best performing funds obtain great inflows whereas the worst performing funds do not experience outflows, have been explained in different ways. ................
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