Individual Investor Activity and Performance

Dahlquist, Magnus, Martinez, Jose Vicente and Soderlind, Paul (2016) Individual Investor Activity and Performance. Swedish House of Finance Research Paper.


We examine the daily activity and performance of a large panel of individual investors in Sweden's Premium Pension System in the period 2000 to 2010. We find that active investors outperform passive investors, and that there is a causal effect of fund changes on performance. Chosen funds outperform discarded funds over all the horizons we study. This outperformance is most significant for changes made within an asset class and towards funds with better recent past performance. While activity is beneficial for the individual investor, extreme flows out of mutual funds affect funds' net asset value negatively for all investors.

Item Type: Other Working Paper
Keywords: Coordinated fund changes, defined contribution, 401(k), finance
Subject(s): Finance
Date Deposited: 11 May 2015 09:38
Last Modified: 10 Dec 2018 09:58

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