Morningstar publishes research about why some funds succeed and others don’t
Morningstar recently published a quantitative research report, “The Rise and Fall of New Funds,” which explores the relationship between observed investor preferences for and eventual investor outcomes in newly launched funds. Morningstar researchers analysed the historical correlations between both forward risk-adjusted returns and forward cumulative fund flows for more than 57,000 unique funds, evaluating success factors and common pitfalls for newly launched funds.