The aim of this paper is to analyse the mutual fund market through the two sides implicated: the investor and management. First, the relevant factors of investment decisions are determined based on the fund flows patterns. In the demand function, past returns and volatility are important indicators for investors, whose choice also takes into account the applied fees. Second, the variables that determine the return obtained by this type of assets are identified. Performance persistence, the positive relationship between return and risk and the existence of a negative size effect, together with inefficient mutual fund management due to the amount of fees are some of the conclusions reached.

Key words: mutual fund, fund flows, performance, fees, investor.
JEL classification: G23.