This paper analyzes how fund flows react to past performance in the dynamic Brazilian equity fund market over the period 2001 to 2012. The study also tests for a "smart money" effect (Zheng, 1999), or whether funds that receive more money subsequently outperform those that receive less money. We find that investors' flows chase past performance, and that there are differences in the flow-performance relationship between retail and institutional funds. We do not find evidence of a "smart money" effect for the whole sample of funds. Nonetheless, flows in small and retail funds, which are often seen as populated by less sophisticated investors, do anticipate future fund performance.