This paper introduces a new measure of liquidity for equity mutual funds. Our measure, called dynamic liquidity, is a combination of a fund's money flow and its volatility around money flow. We show that a fund's dynamic liquidity score (DLS) is an improved indicator of fund liquidity and can be...

This paper examines managerial skill of U.S. equity mutual funds in the context of both abnormal return and risk. We recognize the role of fund life cycle and use different evaluation horizons to control for fund age and the overall state of the market. We find that a small percentage of equity...