Fund size effect from the viewpoint of fund families-evidence from Taiwan
摘要：
Regarding the relation between the fund size and fund performance, there is no consistent conclusion. This study contributes to the literature by focusing on the influence of fund size on fund performance from the viewpoint of family size. In addition to adopting the one-way sorting method to confirm the relation between the fund size and fund performance which past literature has examined, this study further adopts the double sorting method to investigate the performance of different-sized funds in different-sized families. The authors find that the large families perform the best both based on the raw return and four-factor α and the medium-sized funds perform the best no matter what the performance proxy is. For robustness, this study adopts the panel data regression analysis to investigate the influence of the interaction between individual fund size and family size on the fund performance. Regarding the size effect of equity funds in Taiwan, the authors find that the medium funds in large family perform the best and the most robust.The result will help clarify whether the fund family size plays an important role in the relation between fund size and fund performance. The result of this study will provide a reference for the fund investors when they are making the investment decisions.
