Characteristics of Mutual Funds and the Effect on Performance

This thesis examines fund and manager characteristics and the effect on mutual fund performance. We have separated funds investing in emerging and mature markets to examine whether or not characteristics affect performance differently depending on what type of market funds invest in. The Sharpe ratio has been used as the main performance measure. Using survey data from equity funds available in the Swedish market, variables have been defined by funds strategy, manager attributes, investment geographic distribution and fund family characteristics. On a shorter time horizon we find that funds investing globally, older funds and funds from an older independent fund family have a negative effect on performance. We find that larger funds and funds investing in more than one country have a positive effect. Last, we find evidence that fund and manager characteristics affect performance differently for funds investing in mature markets compared to funds investing in emerging markets. (Less)