MUTUAL FUND PERFORMANCE PERSISTENCE

Document Type : Research Paper

Authors

1 Ph.D. in Financial Management, Faculty of Management University of Tehran, Iran

2 Associate Prof., University of Allameh Tabatabaei, Tehran, Iran

3 Ph.D. Candidate in Financial Management, University of Allameh Tabatabaei, Tehran, Iran

Abstract

Mutual fund persistence is well documented in the finance literature, but not well explained. The purpose of this paper is to examine the performance persistence of a large sample ofmutual funds over time. Specifically do mutual fund managers show positive (negative) performanceyear after year?
Accordingly in light of random walk, strong form of efficiency can be tested through the study of the persistence in mutual funds performance. In this paper, the performance consistency for 62 mutual funds, from April 2008 to March 2014, is examined. Our findings indicate the strong form of efficiency from evidence Tehran Stock Exchange.

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References

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Financial Research Journal
Volume 18, Issue 2
May 2016
Pages 331-346

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