This paper studies the behavior of investors in Thai equity funds. I find that investors fund selection observed from money flows in and out of equity funds, prefers large funds with smooth returns and low management fees. Investors do not search for funds with past superior performance, both at the individual fund and the management company level. Commercial banks help their fund management affiliates attract funds better than non-bank affiliated peers. No clear superior performance is found on funds following periods of superior net cash inflows. Trading strategies created based on new money portfolios do not generate abnormal return. Money is not smart Following the flow of money would not earn investors above normal returns. Gross money flows do not affect fund performance either. Timing trading strategy in mutual fund investments do not perform better than passive investing. Aggregate flows into equity funds is not a market sentiment indicator and market returns are not driven by money flows into local equity funds.
