“Active fund managers will always underperform in behavioural market?”

“Active fund managers will always underperform in behavioural market?”

Yibin Liu

Journal of Theoretical and applied Economics LOGO

This paper mainly digs out reasons behind a common view that active fund managers perform poorly in behavioural market at most instances. Based on some economics theories and behaviour finance theories, the paper discusses five reasons arouse underperformance by active managers. Accordingly, these causes are divided into internal and external perspectives as well.

Keywords: behaviour finance theories,active managers underperformance


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How to cite this article:
Yibin Liu. “Active fund managers will always underperform in behavioural market?” Journal of Theoretical and Applied Economics, 2018, 2: 1.DOI: 10.28933/jtae-2018-03-0801


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