Performance and characteristics of Swedish mutual funds

This paper studies the relation between fund performance and fund attribute s in the: Swedish market. Performance is measured as the alpha in a linear regression of fund returns on several benchmark assets, allowing for time-v arying betas. The estimated performance is then used in a cross-sectional a nalysis of the relation between performance and fund attributes such as pas t performance, flows, size, turnover, and proxies for expenses and trading activity. The results show that good performance occurs among small equity funds, low fee funds, funds whose trading activity is high and, in some cas es, funds with good past performance.