Malkiel is from Princeton University. I am indebted to Yexiao Xu for invaluable research assistance, to Lipper Analytic Services for providing the datasets, to René Stulz and an anonymous referee for very helpful comments, and to Princeton University's Center for Economic Policy Studies for financial support.
Returns from Investing in Equity Mutual Funds 1971 to 1991
Article first published online: 30 APR 2012
1995 The American Finance Association
The Journal of Finance
Volume 50, Issue 2, pages 549–572, June 1995
How to Cite
MALKIEL, B. G. (1995), Returns from Investing in Equity Mutual Funds 1971 to 1991. The Journal of Finance, 50: 549–572. doi: 10.1111/j.1540-6261.1995.tb04795.x
- Issue published online: 30 APR 2012
- Article first published online: 30 APR 2012
Several recent studies suggest that equity mutual fund managers achieve superior returns and that considerable persistence in performance exists. This study utilizes a unique data set including returns from all equity mutual funds existing each year. These data enable us more precisely to examine performance and the extent of survivorship bias. In the aggregate, funds have underperformed benchmark portfolios both after management expenses and even gross of expenses. Survivorship bias appears to be more important than other studies have estimated. Moreover, while considerable performance persistence existed during the 1970s, there was no consistency in fund returns during the 1980s.