The Mutual Funds’ Performance Dependence on Their Managers’ Skills not Their Luck Solely

It is important to place emphasis on the fact that mutual funds grow more and more popular today. They attract investors due to the relatively high reliability of their performance and expected high returns. At the same time, managers of mutual funds play the crucial role in the successful performance of mutual funds because they define their development and they manage funds trusted to them by investors.

In such a situation, the analysis of factors contributing to their effective work and positive performance of mutual funds has revealed the fact that professional skills of fund managers are of the utmost importance for the effective performance of mutual funds. As for luck, its impact on the performance of mutual funds can hardly be significant, especially in a long-run perspective. Mutual funds should maintain the steady development and growth, regardless of luck. In such a situation, professional skills of fund managers are crucial for the successful performance of mutual funds. These conclusions are supported by the CAPM and ANOVA along with some traditional tests, which reveal the priority of professional skills of fund managers over luck because fund managers provides accurate forecasts concerning expected returns, market development, and adequate risk assessment.


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