This paper tests the smart money effects about equity mutual fund flow, and provides some good sights for the international investments. First, it provides some evidence of the outperformance of equity mutual funds using Chinese equity mutual fund data. Then it studies the determinants of mutual fund total net flows, individual net flows, and institutional net flows, and finds that the proportion fee plays an important role. Most importantly, I test the “smart money” effects, confirm its existence, and conclude that institutional net flows are smarter than individual net flows. Finally, I find that the proportion fee has a significant signal effect to direct the net flow of the new money.