Citation:

Nan-Yu Wang, Chun-Mei Ting. "A Study on the Performance and Persistence of Open-End Mutual Funds: Evidence from Taiwan’s General Equity Funds" International Research Journal of Economics and Management Studies, Vol. 4, No. 7, pp. 125-134, 2025.

Abstract:

This study selects 20 top-performing open-end equity mutual funds in Taiwan, as listed on Money DJ up to the end of September 2024, encompassing 13 investment trust companies, to examine the persistence and predictability of fund performance. Using statistical methods such as the Pearson correlation coefficient, Spearman rank correlation coefficient, and regression analysis, the study explores the relationship between annualized fund returns and historical rankings to evaluate the stability and forecasting power of fund performance. Empirical results indicate that most funds demonstrated significant stability over the past three to five years, with mid-term (three-year) returns showing the highest predictive power—regression analysis yielded an R² of up to 0.724. Furthermore, risk-adjusted performance metrics, such as the Sharpe Ratio and Jensen’s Alpha, reveal that some funds achieve both high returns and effective risk control. It is recommended that investors prioritize funds with steady returns and high Sharpe Ratios for medium- to long-term allocation, and adopt strategies such as regular investment and periodic portfolio review to enhance overall stability and performance, thereby achieving long-term, sustainable investment goals.

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Keywords:

Fund Performance, Selected from Money DJ Wealth Management Website, Fund Performance Persistence, Pearson Correlation Coefficient, Asset Allocation Strategy.