Title: Performance persistence in socially responsible mutual funds

Authors: Praveen K. Das; S.P. Uma Rao

Addresses: B.I. Moody III College of Business Administration, University of Louisiana at Lafayette, Lafayette, LA 70504, USA ' B.I. Moody III College of Business Administration, University of Louisiana at Lafayette, Lafayette, LA 70504, USA

Abstract: This paper reports on an examination of the performance persistence of 238 socially responsible (SR) mutual funds using ten-year monthly and annual returns. The method used relative percentile ranks and annual returns and reward-to-variability ratios to examine persistence. No evidence of performance persistence was found. The results suggest that superior past performance of SR funds is no indicator of superior performance in future.

Keywords: performance persistence; socially responsible mutual funds; social responsibility; ten-year monthly returns; ten-year annual returns; relative percentile ranking; reward-to-variability ratios; performance indicators.

DOI: 10.1504/IJEBR.2014.065516

International Journal of Economics and Business Research, 2014 Vol.8 No.4, pp.490 - 503

Received: 28 Sep 2013
Accepted: 13 Feb 2014

Published online: 31 Oct 2014 *

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