DP2166 | Performance and Characteristics of Swedish Mutual Funds 1993-97

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The performance, and its characteristics, of Swedish-based equity and bond mutual funds are studied in detail. Accounting for survivorship biases, regular equity funds have a slight overperformance, equity funds with certain tax advantages have a negative performance (before tax), and bond funds a clear underperformance. The performance is related to fund specific characteristics such as netflows of new money into funds, past performance, expense measures, commissions paid by the funds, turnover, and the size of funds. The economic importance of the cross-sectional differences is quantified by investigating various trading strategies.