The Performance of CSR Mutual Funds and Investment Decision-Making

2016 ◽  
Vol 1 (2) ◽  
pp. 229
Author(s):  
Jen-Der Day ◽  
Thuy Mai Trinh Nguyen ◽  
Chia Nan Wang ◽  
George Yungchih Wang
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Investment Decision ◽  
Statistical Significance ◽  
Forecast Accuracy ◽  
Sharpe Ratio ◽  
Decision Table ◽  
Information Ratio ◽  
Investment Funds ◽  
Investment Decision Making

<p>Nowaday, Corporate Socially Responsible (CSR) mutual funds are becoming a popular investment option for investors. However, no any research confirms whether CSR Mutual fund activity is better than market index or not. Besides, we should have one method can help con sequently investors in making the decision to select appropriate investment funds. In this study, we measure the financial performance of a sample of 15 CSR mutual funds in the world, with the monthly return over the period 2008-2013, then we propose the dession table. We first use the measures to evaluate the performance of mutual funds such as Alpha (α), Sharpe Ratio (SR), and Information Ratio (IR). And then, we use the obtained decision table to evaluate the predictability by each measure. The results indicate that only 3 of the 15 CSR mutual funds achieve good performance results based on the statistical significance of the two measures Sharpe Ratio and Information Ratio. In addition, the IR is suggested to evaluate and make investment decisions in the future and it also is the best one among the three measures. The decision table suggest investors a measure forecast accuracy way.</p>

scholarly journals EFFECT OF FINANCIAL LITERACY, RISK ATTITUDE AND SAVING MOTIVES TO DISPOSITION BIAS ON MUTUAL FUNDS INVESTORS

2021 ◽  
Vol 2 (1) ◽  
pp. 27-33
Author(s):  
Jennifer Saputra ◽  
Dewi Astuti ◽  
Dewi Pertiwi
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Financial Literacy ◽  
Investment Decision ◽  
Risk Attitude ◽  
Binary Logistic Regression ◽  
Human Needs ◽  
Investment Decision Making ◽  
Considerable Impact ◽  
Spss Software

Investment is significant to prepare human needs in the future. To make investment decisions, investors will try to make their decisions as rationally as possible. However, one cannot deny that some irrational factors or biases also influence investment decision-making. This study examines financial literacy, risk attitude, and saving motives on disposition bias of mutual fund investors. The sample used is mutual fund investors, and the respondents themselves make decisions to sell or buy mutual funds. The total of respondents is 116 respondents. The regression method used in this study is binary logistic regression using SPSS software. This study found that financial literacy and risk attitude has a significant effect on disposition bias. Meanwhile, the variable saving motives have no considerable impact on disposition bias.

Mutual Funds

GIS Business ◽  
2019 ◽  
Vol 14 (4) ◽  
pp. 201-208
Author(s):  
Sonal Kumawat ◽  
Hemraj Kumawat ◽  
Vaishali Sharma ◽  
Pooja Verma ◽  
Priyanka
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Investment Decision ◽  
Indian Government ◽  
The Past ◽  
Adequate Knowledge ◽  
Investment Decision Making ◽  
Fund Industry ◽  
Mutual Fund Industry ◽  
Unit Trust

The Indian mutual fund industry witnessed a remarkable performance in the past 30 years. After independence, with the joint effort of the Indian government and the Reserve Bank of India, the establishment of Unit Trust of India marked the beginning of the mutual fund industry in India. With the opening of mutual fund industry in India, investors started taking the advantage of multiple investment opportunities. This leads to increase in savings to the funds along with banks. Mutual funds have given consistent favorable returns over the past year despite of slow growth. For making an investment in a highly sophisticated and complex financial market, investors need the support of financial experts to take an informed decision. These financial experts are mutual funds who act as an intermediary. Association of Mutual Funds in India is established to protect the interests of mutual funds along with its unit holders and to ensure the development of Indian mutual fund industry on ethical and professional lines. Today, investors prefers to invest in mutual funds amongst other investment options as mutual funds ensures protection of their interest by making an optimum investment decision making. Investment in mutual funds proved to be advantageous to those investors who are ready to take higher risk in order to earn higher return but they lack adequate knowledge of the market.

Do Ethical Funds Underperform Conventional Funds? - Empirical Evidence from India

Think India ◽  
2015 ◽  
Vol 18 (3) ◽  
pp. 10-19
Author(s):  
Vanita Tripathi ◽  
Varun Bhandari
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Information Ratio ◽  
Socially Responsible ◽  
Investment Funds ◽  
Ethical Investing ◽  
Paired Samples ◽  
Ethical Investments ◽  
Equity Index ◽  
Ethical Funds

One of the significant developments in the investing community is the rise of socially responsible or ethical investments during last two decades. Because of the increasing size and importance of ethical mutual funds, this paper seeks to evaluate and compare the performance of ethical mutual funds with general funds and benchmark index (S&P BSE Shariah 500 Equity Index) in the Indian market. The sample comprises six ethical fund schemes and three general fund schemes of Tauras mutual fund over the period 2009-2014 using weekly NAVs. The study uses return, risk, risk-adjusted measures (Sharpe ratio, Treynor ratio, Jensens alpha and information ratio), Famas decomposition measure, paired samples t-test, and growth regression equation to accomplish the objectives. The findings suggest that some of the ethical funds generated significantly higher return than other funds and benchmark index. Despite having higher risk, ethical funds outperformed other funds and benchmark index on the basis of various risk-adjusted measures and net selectivity returns. This indicates that the compromise made with respect to diversification by investing in ethical funds was well rewarded in terms of higher returns in Indian context. Our findings lend support to the case of ethical investing in India. Mutual funds and other investment funds should launch schemes which invest in socially responsible or ethical stocks.

Do Ethical Funds Underperform Conventional Funds? Empirical Evidence from India

2015 ◽  
Vol 4 (2) ◽  
Author(s):  
Vanita Tripathi ◽  
Varun Bhandari
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Information Ratio ◽  
Socially Responsible ◽  
Investment Funds ◽  
Ethical Investing ◽  
Paired Samples ◽  
Ethical Investments ◽  
Equity Index ◽  
Ethical Funds

One of the significant developments in the investing community is the rise of socially responsible or ethical investments during last two decades. Because of the increasing size and importance of ethical mutual funds, this paper seeks to evaluate and compare the performance of ethical mutual funds with general funds and benchmark index (S&P BSE Shariah 500 Equity Index) in the Indian market. The sample comprises six ethical fund schemes and three general fund schemes of Tauras mutual fund over the period 2009-2014 using weekly NAVs. The study uses return, risk, risk-adjusted measures (Sharpe ratio, Treynor ratio, Jensens alpha and information ratio), Famas decomposition measure, paired samples t-test, and growth regression equation to accomplish the objectives. The findings suggest that some of the ethical funds generated significantly higher return than other funds and benchmark index. Despite having higher risk, ethical funds outperformed other funds and benchmark index on the basis of various risk-adjusted measures and net selectivity returns. This indicates that the compromise made with respect to diversification by investing in ethical funds was well rewarded in terms of higher returns in Indian context. Our findings lend support to the case of ethical investing in India. Mutual funds and other investment funds should launch schemes which invest in socially responsible or ethical stocks.

A Study on Investment Decision of Investors With Reference to Penetration of Mutual Funds in India

2016 ◽  
Vol 5 (2) ◽  
Author(s):  
Ratish C Gupta ◽  
Dr. Manish Mittal
Keyword(s):  
Decision Making ◽  
Real Estate ◽  
Mutual Funds ◽  
Capital Markets ◽  
Mutual Fund ◽  
Financial Services ◽  
Investment Decision ◽  
Fund Industry ◽  
Mutual Fund Industry ◽  
The Impact

The Indian mutual fund industry is one of the fastest growing and most competitive segments of the financial sector. The extent of under-penetration in the market is a sore point with the financial services industry, with a large amount of savings being channelized into fixed deposits, gold and real estate rather than the capital markets. The mutual fund industry is yet to spread its reach beyond Tier I cities. The top fifteen cities contribute to 85% of the pie, with the remaining 15% distributed among other cities. The study seeks to determine the impact of decision making of investors on current situation of mutual fund industry.

scholarly journals PENGUKURAN METODE RASIO INFORMASI, RASIO SORTINO DAN ROY SAFETY FIRST RATIO PADA KINERJA REKSADANA SAHAM SYARIAH PERIODE 2015-2017

2020 ◽  
Vol 6 (8) ◽  
pp. 1644
Author(s):  
Nur Rohman Azis ◽  
Atina Shofawati
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Information Ratio ◽  
Performance Result ◽  
Positive Performance ◽  
Qualitative Descriptive ◽  
Level Performance ◽  
Safety First ◽  
One Way Anova ◽  
Sortino Ratio

The Objective of this research is to identify whether there is a different level performance of mutual funds in syariah shares among Information Ratio, Sortino Ratio, and Roy Safety First Ratio. This analysis using qualitative descriptive. In this case, the authority of money service website mentions there are 21 mutual funds in syariah shares could be taken as the sample of the analysis by using purposive sampling method. Verification result is done by One-way Anova test. The measurement result of the mutual fund in syariah shares uses the method Information Ratio provides 3 mutual funds in syariah shares are in positive performance in 2015 and 2017 and 5 mutual funds in syariah shares are in negative performance in 2016. It means there is a different performance result of mutual fund in syariah shares. The result Sortino ratio provides all of mutual fund share are in negative performance in all of year. It means there is no different performance result of mutual fund in syariah shares. The result Roy Safety First Ratio provides all of mutual funds in syariah shares are in negative performance in 2015, 2 mutual funds in syariah shares are in negative performance in 2016 and 4 mutual funds in syariah shares are in positive performance in 2017. It means there is no different performance result of mutual fund in syariah shares.Keywords: Performace of mutual funds, Information Ratio, Sortino Ratio, Roy Safety First Ratio, Mutual Funds in Syariah Shares

scholarly journals Hedge Fund Performance Using Scaled Sharpe And Treynor Measures

2014 ◽  
Vol 13 (6) ◽  
pp. 1261
Author(s):  
Francois Van Dyk ◽  
Gary Van Vuuren ◽  
Andre Heymans
Keyword(s):  
Hedge Funds ◽  
Performance Metrics ◽  
Estimation Error ◽  
Investment Decision ◽  
Hedge Fund ◽  
Fund Performance ◽  
Performance Measure ◽  
Sharpe Ratio ◽  
Investment Funds ◽  
Additional Information

The Sharpe ratio is widely used as a performance measure for traditional (i.e., long only) investment funds, but because it is based on mean-variance theory, it only considers the first two moments of a return distribution. It is, therefore, not suited for evaluating funds characterised by complex, asymmetric, highly-skewed return distributions such as hedge funds. It is also susceptible to manipulation and estimation error. These drawbacks have demonstrated the need for new and additional fund performance metrics. The monthly returns of 184 international long/short (equity) hedge funds from four geographical investment mandates were examined over an 11-year period.This study contributes to recent research on alternative performance measures to the Sharpe ratio and specifically assesses whether a scaled-version of the classic Sharpe ratio should augment the use of the Sharpe ratio when evaluating hedge fund risk and in the investment decision-making process. A scaled Treynor ratio is also compared to the traditional Treynor ratio. The classic and scaled versions of the Sharpe and Treynor ratios were estimated on a 36-month rolling basis to ascertain whether the scaled ratios do indeed provide useful additional information to investors to that provided solely by the classic, non-scaled ratios.

scholarly journals Evaluation of Mutual Funds Performance And Consistency test over the use of Performance Sizing Methods

2020 ◽  
Vol 5 (6) ◽  
pp. 650-656
Author(s):  
Eka Kusumawati ◽  
Ega Bagja Nugraha
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Sharpe Ratio ◽  
Superior Performance ◽  
Ratio Method ◽  
Surveillance Period ◽  
Consistency Test ◽  
Asset Value ◽  
Equity Funds ◽  
Coefficient Of Concordance

The development of mutual fund industry in Indonesia has increases every year. From those several types of equity funds, the Net Asset Value (NAV) of mutual funds has increased by quite high number from year to year compared to other types. This research was assess the performance of mutual funds and examine those several consistency over the use of performance sizing methods from Sharpe ratio, Treynor index and Jensen's Alpha methods. Current problem who was stumbled was how the performance of stock mutual funds was measured by the Sharpe ratio, Treynor index and Jensen's Alpha methods and whether there has consistency over its performance by using it. The recent sample was 37 mutual funds that were registered at BAPEPAM-LK and still operating in Indonesia from January 2009 to October 2013. Performance evaluations used Sharpe ratio method, Treynor index and Jensen's Alpha. As for assess those consistency of the use performance sizing methods was done by Kendall coefficient of concordance (W) test. The result over this research said that Panin Dana Maksima and Panin Dana Prima are the best mutual funds, this could be seen during these surveillance period which found that mutual fund has superior performance above the market. The result of consistency test over those performance of stock mutual funds using Kendall W's concordance coefficient found that there has consistency or harmony when evaluated the performance of equity funds by using Sharpe Ratio, Treynor Index and Jensen's Alpha methods during those period.

scholarly journals Risk-adjusted return, fund manager efficacy, and fund characteristics – An inquiry

2021 ◽  
Author(s):  
Riyazahmed K
Keyword(s):  
Regression Analysis ◽  
Mutual Funds ◽  
Fund Performance ◽  
Sharpe Ratio ◽  
Information Ratio ◽  
Fund Manager ◽  
Data Set ◽  
Dependent Variables ◽  
Corpus Size ◽  
The Impact

Abstract In this study, I examine the risk-adjusted return of mutual funds in India. A data set of 4220 mutual funds is used for the analysis. Sharpe ratio, a metric of risk-adjusted return (Sharpe, 1994) and Information ratio, a metric of outperformance than a fund’s benchmark (Goodwin, 1998) were analyzed. Regression analysis is used to estimate the impact of fund characteristics like fund category, fund type, fund access type, corpus size on the dependent variables i.e., Sharpe Ratio and the Information Ratio. All the funds underperformed in both the Sharpe ratio and Information ratio. Liquid funds found worst. Fund type and corpus size do not impact fund performance. Fund access type was found to be significant on fund performance. The results add to the literature by examining the post-pandemic period.

INVESTIGATING MEDIA AND COMMUNICATION CHANNEL SEARCH BEHAVIOUR OF RETAIL INVESTORS FOR INVESTMENT DECISION IN EMERGING FINANCIAL MARKETS

2021 ◽  
Vol 14 (8) ◽  
pp. 34-45
Author(s):  
Atul Shiva ◽  
Monica Sethi ◽  
Diksha Ahuja ◽  
Kritika Sharma
Keyword(s):  
Financial Markets ◽  
Mutual Funds ◽  
Mutual Fund ◽  
Word Of Mouth ◽  
Investment Decision ◽  
Search Behaviour ◽  
Financial Advice ◽  
Effective Manner ◽  
First Choice ◽  
Word Of Mouth Communication

The purpose of this study aims at investigating the major sources of information which drives the investor’s behaviour in investment decisions in Indian Financial Markets. Diverse sources are classified into three categories, that is, financial advice, word-of-mouth communication and specialised press to investigate their effects on the investment behaviour of investors. A total of 258 investors filled a survey on a questionnaire in the National Capital Region of India by using the purposive sampling method. For analysis of data, PLS-SEM was applied on the software version 3.2.9. The key outcome of the study revealed that financial advice was considered as first choice (β = 0.265, p<0.000) to build their investment decision primarily on weekly basis followed by word-of-mouth communication (β = 0.154, p<0.05). Lastly, the mutual fund investors prefer financial newspapers and financial reports published by mutual fund regulatory body and their companies in India to do mutual funds investment. This study proposed a conceptual model in the literature of information search behaviour for mutual funds and contributes significantly to the mutual fund companies and investment agencies to market financial products in an effective manner for investors.

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