bond mutual funds. We find that high reaching-for-coupon (RFC) funds, i.e., bond funds whose portfolios pay higher coupons …

We make use of a unique dataset of SEC Form N-SAR filings to examine the gross flows of U.S. bond funds. We find that …, we see that, like equity funds, bond fund investors chase returns. Most of the return chasing is done by inflows. Funds … nearly 0.6% in assets per month. Next, we find that positive net flows cause bond funds to diversify their holdings …

This paper provides a comprehensive examination of money flows in corporate bond funds which, though less researched …, represent an important setting to study investor behavior. Based on a large sample of corporate bond funds over 1991–2014, we …