This paper examines the flows of funds into and out of equity mutual funds, focusing on how consumers' decisions are influenced by prior performance information. The authors find that consumers invest disproportionately more in funds that performed well in the previous period, driven by search costs. High-performance funds, particularly those with higher marketing efforts (measured by higher fees), experience more significant growth. The size of the fund complex and media attention also play a role, as these factors lower consumers' search costs. The study uses nearly two decades of data on equity mutual funds to analyze the relationship between fund performance and flows, concluding that consumers are fee-sensitive and may be less sensitive to the ex-post riskiness of fund investments. The paper also discusses the implications of costly search for mutual fund flows, suggesting that mechanisms reducing search costs have a material impact on consumer fund choices.This paper examines the flows of funds into and out of equity mutual funds, focusing on how consumers' decisions are influenced by prior performance information. The authors find that consumers invest disproportionately more in funds that performed well in the previous period, driven by search costs. High-performance funds, particularly those with higher marketing efforts (measured by higher fees), experience more significant growth. The size of the fund complex and media attention also play a role, as these factors lower consumers' search costs. The study uses nearly two decades of data on equity mutual funds to analyze the relationship between fund performance and flows, concluding that consumers are fee-sensitive and may be less sensitive to the ex-post riskiness of fund investments. The paper also discusses the implications of costly search for mutual fund flows, suggesting that mechanisms reducing search costs have a material impact on consumer fund choices.