Versión electrónica ISSN 0718 - 1566
Versión impresa ISSN 0716 - 1921

Is the profitability of Chilean Mutual Funds predictable? Analysis
of the Industry and its persistence of profitability
The goal of present work is to analyze the persistence of profitability in Chilean Mutual Funds through investment in capitalization instruments (variable income) for the 1996- 2006 period. The non-parametric methodology of contingency tables and contrast statistics was used. The statistical tests of Malkiel (1995); Brown and Goetzmann (1995); and Kahn and Rudd (1995) were applied to determine the significance level of the persistence phenomenon. The results show the existence of persistence of profitability in the reviewed Mutual Funds during the 2003-2004, 2004-2005, and 2005-2006 periods. Based on this, it can be concluded that the Chilean variable income Mutual Funds market for the 2003-2006 period is quite predictable, that is to say, the winner funds in one a year continue to be winners in the following year, and the loser funds in one year have the same condition in the following year.