@inbook{f6098d2b9bd84187b134dc38b9a7b529,
title = "Mutual fund investing in the Chinese A-share market",
abstract = "This chapter investigates whether stock mutual funds in the Chinese A-share market provide economic value for investors. Stock mutual funds in China experienced a steady growth from 2006 to 2019 - the number of funds multiplied by 17-fold. These funds outperform the CSI300 Index on average, and fund returns show economically large differences in the cross-section. Fund performance exhibits persistence: the top-performing funds in a given month are also likely to be the top funds in the following month. Portfolios formed using the top-performing funds improve the risk-return tradeoff compared to investing in the aggregate market, without increased volatility or tail risk. Our results indicate stock mutual funds provide attractive investment opportunities in the A-share market.",
keywords = "Emerging market, Chinese A-share market, mutual funds, performance evaluation, performance persistence, manager skill, passive investing, active investing, portfolio management, risk-return tradeoff",
author = "Yeguang Chi and Xiao Qiao",
year = "2022",
doi = "10.4337/9781800880900.00008",
language = "English",
isbn = "9781800880894",
series = "Research Handbooks in Money and Finance",
publisher = "Edward Elgar Publishing Ltd.",
pages = "32–50",
editor = "Nguyen, {Duc Khuong}",
booktitle = "Handbook of Banking and Finance in Emerging Markets",
address = "United Kingdom",
}