How does mutual fund flow respond to oil market volatility?

We comprehensively study the impact of oil market volatility on mutual fund flow. In particular, using an extensive dataset on Saudi Arabia covering virtually all equity funds over 2006-2017, this paper provides the first analysis of the linkages between fund flow and oil market volatility. Our main...

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Main Authors:	Bader Alsubaiei, Giovanni Calice, Andrew Vivian
Format:	Default Article
Published:	2020
Subjects:	Mutual Fund Fund Flow Oil Market Volatility Oil Exposed Funds Saudi Arabia Return Performance
Online Access:	https://hdl.handle.net/2134/13056416.v1
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id	rr-article-13056416
record_format	Figshare
spelling	rr-article-130564162020-11-12T00:00:00Z How does mutual fund flow respond to oil market volatility? Bader Alsubaiei (2612824) Giovanni Calice (1253097) Andrew Vivian (1254615) Mutual Fund Fund Flow Oil Market Volatility Oil Exposed Funds Saudi Arabia Return Performance We comprehensively study the impact of oil market volatility on mutual fund flow. In particular, using an extensive dataset on Saudi Arabia covering virtually all equity funds over 2006-2017, this paper provides the first analysis of the linkages between fund flow and oil market volatility. Our main findings show that investors shift substantially their asset allocation to the equity mutual fund sector in periods of high volatility. Our further evidence suggests that flow to high oil-exposed funds is more sensitive to oil volatility than low oil-exposed funds. This is consistent with investors valuing professional management highly during risky periods in a setting where alternatives to equity investment are limited. Our study provides new evidence for a fast-growing market and reveals important implications for the mutual fund market which helps investors, academics and regulators to better understand the behaviour of this market. 2020-11-12T00:00:00Z Text Journal contribution 2134/13056416.v1 https://figshare.com/articles/journal_contribution/How_does_mutual_fund_flow_respond_to_oil_market_volatility_/13056416 CC BY-NC-ND 4.0
institution	Loughborough University
collection	Figshare
topic	Mutual Fund Fund Flow Oil Market Volatility Oil Exposed Funds Saudi Arabia Return Performance
spellingShingle	Mutual Fund Fund Flow Oil Market Volatility Oil Exposed Funds Saudi Arabia Return Performance Bader Alsubaiei Giovanni Calice Andrew Vivian How does mutual fund flow respond to oil market volatility?
description	We comprehensively study the impact of oil market volatility on mutual fund flow. In particular, using an extensive dataset on Saudi Arabia covering virtually all equity funds over 2006-2017, this paper provides the first analysis of the linkages between fund flow and oil market volatility. Our main findings show that investors shift substantially their asset allocation to the equity mutual fund sector in periods of high volatility. Our further evidence suggests that flow to high oil-exposed funds is more sensitive to oil volatility than low oil-exposed funds. This is consistent with investors valuing professional management highly during risky periods in a setting where alternatives to equity investment are limited. Our study provides new evidence for a fast-growing market and reveals important implications for the mutual fund market which helps investors, academics and regulators to better understand the behaviour of this market.
format	Default Article
author	Bader Alsubaiei Giovanni Calice Andrew Vivian
author_facet	Bader Alsubaiei Giovanni Calice Andrew Vivian
author_sort	Bader Alsubaiei (2612824)
title	How does mutual fund flow respond to oil market volatility?
title_short	How does mutual fund flow respond to oil market volatility?
title_full	How does mutual fund flow respond to oil market volatility?
title_fullStr	How does mutual fund flow respond to oil market volatility?
title_full_unstemmed	How does mutual fund flow respond to oil market volatility?
title_sort	how does mutual fund flow respond to oil market volatility?
publishDate	2020
url	https://hdl.handle.net/2134/13056416.v1
_version_	1768012023197597696

How does mutual fund flow respond to oil market volatility?

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