MUTUAL FUND INVESTMENT PERFORMANCE

A pooled cross-section/time series analysis is used to assess the long -run relationship between risk-adjusted performance of equity mutual f unds and asset size expense ratios, portfolio turnover, and load/no-lo ad status. The data base consists of investment results of 151 equity mutual funds in continual operation over the 20-year period from 1971 to 1990. Variations of the cross-section/time series model are employe d to explore the interactions among the nature of the funds (load or n o-load) with asset size and expense ratios. Investment performance is not related to asset size, turnover rate, or load/no-load status, and higher expenses are associated with higher returns.