The determinants of money flows into mutual funds

<p>Today popularity of investments sharply decreased at Russian stock exchange due to low-return market in conditions after financial crisis in 2008. The same low popularity among investors is also typical for Russian mutual funds. This research was carried out to find the most significant factors that affect the money flows into Russian mutual funds. The main technique used was an estimation of multiple linear regressions method of least squares. The uniqueness of this paper is a dependent variable. It was a change in net assets of mutual funds instead of usual raw return or risk-adjusted return. Unexpected results were obtained in negative impact of return of fund to money flows into fund. Other significant factors were personal attributes of fund managers like an education and work experience. This research may be useful for fund holders who want to know how to attract new investors.</p>