RT Journal Article SR Electronic T1 Dynamic Liquidity and Mutual Fund Performance JF The Journal of Investing FD Institutional Investor Journals SP 77 OP 88 DO 10.3905/joi.2017.26.3.077 VO 26 IS 3 A1 Qiang Bu A1 Nelson Lacey YR 2017 UL https://pm-research.com/content/26/3/77.abstract AB This article introduces a new measure of liquidity for equity mutual funds. This measure, the dynamic liquidity score (DLS), is a combination of a fund’s money flow and its volatility around money flow. The authors show that a fund’s dynamic liquidity score is an improved indicator of fund liquidity and can be used as a signal of performance. For example, in a volatile market, a high DLS is associated with a higher fund return, whereas in a stable market, DLS is negatively associated with the fund return. Overall, the impact of dynamic liquidity on fund performance is short term and time varying.TOPICS: Mutual fund performance, equity portfolio management