search query: @indexterm taxation / total: 1872
reference: 362 / 1872
| Author: | Bergstressera, D. Poterba, J. |
| Title: | Do after-tax returns affect mutual fund inflows? |
| Journal: | Journal of Financial Economics
2002 : MAR, VOL. 63:3, p. 381-414 |
| Index terms: | Stock markets Unit trusts Incomes Taxation USA |
| Freeterms: | Tax returns |
| Language: | eng |
| Abstract: | This paper explores the relationship between the after-tax returns that taxable investors earn on equity mutual funds and the subsequent cash inflows to these funds. Previous studies have documented that funds with high pretax returns attract greater inflows. This paper presents evidence, based on a large sample of retail equity mutual funds over the period 1993-1999, that after-tax returns have more explanatory power than pretax returns in explaining inflows. In addition, funds with large overhangs of unrealized capital gains experience smaller inflows, all else equal, than funds without such unrealized gains. |
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