However, there are a number of advantages to examining the smart money effect in fund management using our fund data. First, ourmoney f low data aremonthly rather than quarterly. Second, we observe exact f lows rather than approximations based on fund values and fund returns. Third, we can distinguish between institutional and individualmoney f lows. Fourth, we can distinguish between purchases and sales. A further advantage is that we are able to examine mutual fund investor behavior in a different institutional setting from that of the United States. For example, funds,. funds competewithinwell-defined peer groups, which may facilitate investors’ decision making. Also, the tax overhang issue (Barclay, Pearson, and.
