Unconstrained mutual funds have not delivered superior performance: Morningstar data for funds with three years of investing history offer no evidence that they outperform mutual funds in comparable asset classifications.
Source quote, verbatim
The Morningstar data available for UMFs with three years of investing history offer no evidence that UMFs have a superior performance to mutual funds in comparable asset classifications.
Wulf A. Kaal, Unconstrained Mutual Funds and Retail Investor Protection (2016). SSRN: https://ssrn.com/abstract=2811729
Holds when
unconstrained mutual funds with at least three years of investing history
Classification
failuresupport: evidencedfailure: No performance premium for added riskfamily: investor-protection-gapprivate-fundsempirical-evidence
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