Small mutual funds outperform large ones by 7.08% annually in the U.S.
The study looked at how the size of mutual funds affects their performance. They found that smaller U.S. funds tend to perform better than larger ones, with a 7.08% yearly advantage. Large U.S. funds only start to underperform when they are in the top 70% in size. However, this performance difference is not seen in funds investing outside the U.S. These findings have important implications for the mutual fund industry.