Domestic and Foreign Mutual Funds in Mexico PDF Download

Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Domestic and Foreign Mutual Funds in Mexico PDF full book. Access full book title Domestic and Foreign Mutual Funds in Mexico by Jasmine Xiao. Download full books in PDF and EPUB format.

Domestic and Foreign Mutual Funds in Mexico

Domestic and Foreign Mutual Funds in Mexico PDF Author: Jasmine Xiao
Publisher: International Monetary Fund
ISBN: 1484388895
Category : Business & Economics
Languages : en
Pages : 33

Get Book Here

Book Description
This paper utilizes a new dataset of foreign and domestic mutual funds in Mexico to assess their behavior and obtains three new findings. First, foreign mutual funds are more sensitive to global financial conditions and engage more in herding and positive feedback trading than domestic mutual funds, notably during episodes of market stress. Second, the behavior of foreign funds differs substantially across types of funds: bond funds are more sensitive to global factors and engage more in positive feedback trading than equity funds; funds sold to retail investors, open-end funds, small funds, and regional funds also appear to be less stable sources of capital flows. Third, there is indicative evidence that foreign funds’ trading behavior is associated with higher local market volatilities, notably in periods of market stress; however, domestic mutual fund investors played some mitigating role.