Does Investor Myopia Affect Fund Investment Returns?An Empirical Study Based on Survey Data from Individual Investors in Public Mutual Funds
The phenomenon"funds make money,fund investors do not"highlights that the realized rates of return for fund investors are significantly lower than the long-term holding re-turns of public mutual funds.In practice,investors often lack a long-term investment perspec-tive,exhibiting tendencies toward myopia.Employing a behavioral finance framework and using survey data from individual investors in Chinese public mutual funds,this study empirically inves-tigated the relationship between investor myopia and fund investment returns.The findings indi-cate that myopia negatively impacts fund investment returns.To address endogeneity issues,an in-strumental variable is constructed using the exogenous shock of the introduction of personal tax-deferred pension policies.The results robustly support the initial conclusions.Mechanism analysis suggests that reliance on technical analysis,low tolerance for losses,and trend-chasing behaviors are significant mechanisms through which investor myopia affects fund investment returns.Hetero-geneity analysis reveals that myopia has a more substantial impact on the returns of investors who choose high-risk funds and do not receive professional advice.Strengthening investor education can help mitigate the adverse effects of myopia.
NETL
NSTL
万方数据
