Performance manipulation fails to attract investors to underperforming funds in SA.
The study looked at how mutual fund performance affects the flow of investors' money in South Africa. They found that factors like past fund flows and fund size can predict how much money investors will put into a fund. Market risk also plays a role in where investors put their money. Interestingly, the study showed that manipulating performance doesn't actually attract more money from investors. This means that other factors, not just performance, influence how much money flows into mutual funds in South Africa.