This paper investigates the purchases and redemptions of a large cross-sectional sample of German equity funds. We find that investors punish bad performance by selling their shares, but also have a tendency to sell winners. Investors in large fund families show higher sales and redemption...

Basics about Technical and Fundamental Trading -- Combination of Momentum and Operating Cash Flow Strategies -- A Closer Look at the Market Reactions -- Fundamental and Technical Trading by Mutual Funds -- Concluding Remarks.

This paper studies the flow-performance relationship of three different investor groups in mutual funds: Households, financial corporations, and insurance companies and pension funds, establishing the following findings: Financial corporations have a strong tendency to chase past performance and...