Abstract
- The study examines conditions that lead mutual funds to underperform or outperform competitors. Using fuzzy-set comparative analysis, we draw upon an extensive research and extend earlier findings. We find that positive Morningstar ratings and star analyst ratings are necessary conditions for funds to generate abnormally positive and significant returns. Low management fees and low ongoing fees favor long term returns, as well. Attractive Sharp Ratios and high returns are associated with these lower fees and positive ratings. Longer management tenure is not necessarily associated with enhanced returns.