---
title: Beliefs That Predict Returns and Beliefs That Attract Flows: Policy Insights and Sentiment Catering in Mutual Funds
url: https://www.ml-quant.com/papers/repec/nbr-nberwo-35528/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-10-09
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: RePEc:nbr:nberwo:35528
source_url: https://econpapers.repec.org/RePEc:nbr:nberwo:35528
featured: 2026-10-09
citations: unknown
topic: Portfolio & Allocation
---


# Beliefs That Predict Returns and Beliefs That Attract Flows: Policy Insights and Sentiment Catering in Mutual Funds

The study shows that mutual fund managers' policy beliefs predict market returns and explain positive alphas, while sentiment beliefs attract flows but lack predictive power.

- Source: https://econpapers.repec.org/RePEc:nbr:nberwo:35528
- Identifier: RePEc:nbr:nberwo:35528
- Released: 2026-10-09
- First featured: Quant Letter No. 134 (2026-10-09): https://www.ml-quant.com/issues/2026-10-09/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Portfolio & Allocation
- Authors: Zhenyu Gao, Wei Xiong, Jian Yuan

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