scholarly journals Performance and Evaluation of Portfolio of Mutual Funds

2015 ◽  
Vol 2 (2) ◽  
pp. 1-5
Author(s):  
Agha Ammad Nabi ◽  
Umair Zuhair
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Money Market ◽  
Sharpe Ratio ◽  
Money Market Funds ◽  
Equity Funds ◽  
State Of Mind ◽  
Fund Industry ◽  
Mutual Fund Industry ◽  
Performance And Evaluation

The basic approach of any kind of investor is to handle and minimize the risk and increase their profits. It is common fact that to manage the risk is not to have all eggs in a basket in monetary markets and this saying is familiar as diversification. The diversifications need decision regarding which basket to have which eggs and how much eggs should have in the basket. The lack of financial expertise in the context of mutual funds for making investment in markets has introduced mutual funds with the state of mind of financial experts. The experts of financial markets have only advantage since the fact that it is always win-win situation for them who don’t know about investment and decreasing the risk via managing funds in effective way by bigger portfolios and sufficient amount of money. As the mutual fund industry of Pakistan expanded with some pace in first decade of this century and due to this reason the performance evaluation of this industry become critical and hot topic. The study aims to measure the performance of Pakistani mutual fund industry from 2014 to 2017. There are total 233 mutual funds operating in the mutual industry of Pakistan, out of 233 mutual funds, total 45 mutual funds were selected for the study; 23 mutual funds were from equity while only 22 mutual funds were selected form money market. Sharpe ratio was used to measure the risk-adjusted performance of mutual funds and the Sharpe ratio in both equity funds and money market funds are positive, thus indicating that funds managers have the ability to diversify investment to decrease the risk.

scholarly journals FACTORS INFLUENCING THE INVESTORS TO INVEST IN MUTUAL FUNDS: AN EMPIRICAL ANALYSIS

2020 ◽  
Vol 6 (9) ◽  
pp. 45-52
Author(s):  
Bishwajit Rout ◽  
Sangeeta Mohanty
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Exchange Traded Funds ◽  
Equity Fund ◽  
Index Funds ◽  
Money Market Funds ◽  
Wide Range ◽  
Different Types ◽  
Fund Industry ◽  
Mutual Fund Industry

Indian mutual fund industry started with traditional products like equity fund, debt fund and balanced fund and later significantly increased it’s product base. Today, the industry has introduced a wide range of products such as money market funds, sector specific funds, index funds, gilt funds, insurance linked funds, exchange traded funds, and marching towards reality funds. The different types of schemes offered by the Indian mutual fund industry provide several options of investment to common man. What is noteworthy is that bulk of the mobilization has been by the private sector mutual funds rather than bank sponsored mutual funds. Through this paper the author has attempted to focus on the the factors that motivate the investors to invest in mutual funds.

The Persistence of Fee Dispersion among Mutual Funds

2020 ◽  
Author(s):  
Michael J Cooper ◽  
Michael Halling ◽  
Wenhao Yang
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Value Added ◽  
Economic Effects ◽  
Equity Funds ◽  
Strong Negative Association ◽  
International Equity ◽  
Fund Industry ◽  
Mutual Fund Industry ◽  
Fund Size

Abstract Previous work shows large differences in fees for S&P 500 index funds and other funds and suggests that investors suffer wealth losses investing in high-fee funds when similar low-fee funds are available. In contrast, the neoclassical model of mutual funds (Berk and van Binsbergen, 2015, J. Financ. Econ., 118, 1–20) argues that percentage fees are irrelevant, as fund size will adjust in equilibrium such that net alphas are equal to zero. We show that fees matter from an investor perspective. We document (i) a strong negative association between net-of-fee fund performance and fees in a sample of all US and international equity funds, (ii) economically large, robust, persistent, and pervasive fee dispersion in the mutual fund industry, and (iii) important economic effects for investors. During the sample period, the mutual fund industry has generated a total value lost (i.e., a negative net value added) of 125 billion USD, coming predominantly from high-fee funds.

scholarly journals Effects of asymmetric information on market timing in the mutual fund industry

2018 ◽  
Vol 14 (5) ◽  
pp. 542-557 ◽  
Author(s):  
Venessa S. Tchamyou ◽  
Simplice A. Asongu ◽  
Jacinta C. Nwachukwu
Keyword(s):  
Information Asymmetry ◽  
Mutual Funds ◽  
Mutual Fund ◽  
Market Timing ◽  
Risk Exposure ◽  
Content Type ◽  
Time Dynamic ◽  
Equity Funds ◽  
Fund Industry ◽  
Mutual Fund Industry

Purpose The purpose of this paper is to investigate the effects of information asymmetry (between the realized return and the expected return) on market timing in the mutual fund industry. Design/methodology/approach For the purpose, the authors use a panel of 1,488 active open-end mutual funds for the period 2004-2013. The authors use fund-specific time-dynamic betas. The information asymmetry is measured as the standard deviation of idiosyncratic risk. The data set is decomposed into five market fundamentals in order to emphasis the policy implications of the findings with respect to: equity, fixed income, allocation, alternative, and tax-preferred mutual funds. The empirical evidence is based on endogeneity-robust difference and system generalized method of moments. Findings The following findings are established. First, the information asymmetry broadly follows the same trend as volatility, with a higher sensitivity to market risk exposure. Second, fund managers tend to raise (cutback) their risk exposure in time of high (low) market liquidity. Third, there is evidence of convergence in equity funds. The authors may, therefore, infer that equity funds with lower market risk exposure are catching-up with their counterparts with higher exposure to fluctuation in market conditions. Originality/value The paper complements the sparse literature on market timing in the mutual fund industry with time-dynamic betas, information asymmetry and an endogeneity-robust empirical approach.

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 Mutual Fund Performance and the Impact of Superannuation and Financial Regulation

2018 ◽  
Author(s):  
James M. Cooper ◽  
Russell Gregory-Allen
Keyword(s):  
New Zealand ◽  
Mutual Funds ◽  
Open Economy ◽  
Mutual Fund ◽  
Financial Regulation ◽  
Positive Impact ◽  
Small Open Economy ◽  
Fund Industry ◽  
Mutual Fund Industry ◽  
The Impact

Financial innovation such as a new superannuation scheme can allow for broader participation in retirement savings by individuals, but might also impact existing investments. On the other hand, mutual fund regulation involves a balancing act between protecting investors, and allowing fund managers to exercise their skills. Some recent changes in the fund environment of New Zealand allows an examination of the impact on performance from those changes in a small, open economy. Using a sample of New Zealand mutual funds, we compared performance before and after the introduction of two significant changes in the financial environment of New Zealand. In 2007, a state-sponsored investment scheme called KiwiSaver was introduced, providing significant incentives for more and more New Zealanders to save. Participation was substantial, and by 2015 KiwiSaver funds under management had exceeded traditional open-end funds. At the time of KiwiSaver’s introduction, mutual fund regulations was quite lax, particularly in the area of financial disclosure. However, in 2013 a new law was introduced, substantially increasing the disclosure requirements for those funds participating in the KiwiSaver scheme. First we examined, the impact on the New Zealand mutual fund industry upon the introduction of KiwiSaver, and then on the introduction of the increased KiwiSaver regulations, in order to determine if these harmed the overall New Zealand mutual fund industry. We found that the New Zealand mutual funds which focused on New Zealand or Australian equities experienced some negative performance after the introduction of KiwiSaver, but the impact on the overall industry was not significant. We also found that the increased regulations had some positive impact on performance, particularly for those funds emphasising global equities.  

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.

A Study on the Performance of Indian Mutual Funds in Recent Years

2021 ◽  
pp. 428-444
Author(s):  
Dipika Varshney ◽  
Sowjanya Heblikar ◽  
Sunitha B K
Keyword(s):  
Mutual Funds ◽  
Empirical Research ◽  
Mutual Fund ◽  
Financial Industry ◽  
Indian Economy ◽  
Cause And Effect ◽  
Fund Industry ◽  
Mutual Fund Industry ◽  
And Performance

The Indian mutual fund industry is an integral part of the Indian financial industry. The mutual fund industry has a significant impact on the Indian economy. This study aims at understanding the growth and performance of mutual fund industry and understanding the cause and effect through empirical research. For this research, published papers have been studied and analysed to give a better understanding of the industry. This study records the performance of Indian mutual funds from the year 2015-2020. It analyses the performance of the debt, equity, and ETF mutual funds. The challenges are huge, but the investors have shown a matured behaviour. The 2020 pandemic has allowed investors to balance their portfolios by removing poor performing mutual fund holdings.

scholarly journals Performance and Persistence of Indian Mutual Fund Industry

2019 ◽  
Vol 8 (2) ◽  
pp. 5212-5216
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Mutual Funds ◽  
Asset Management ◽  
Mutual Fund ◽  
Financial Literacy ◽  
Developed Countries ◽  
Household Sector ◽  
Fund Industry ◽  
Mutual Fund Industry

The Indian mutual fund industry history started in 1963. The development of the mutual funds industry in India from all the parameters like number of asset management companies, number of schemes, number of investors, and amount of fund invested in mutual funds, mutual funds played major role in the development of the country’s industrial and economic growth etc. Household sector is the key fund supplier to mutual fund industry. Household sectors saving growth rate has been raising year by year. This study address the question, has mutual fund industry succeeded in India? Indian mutual funds have not utilized complete potentiality of prospective investors. Mutual funds have succeeded and played major role in the development of industry, economy etc. in developed countries like USA and Japan. Mutual fund industry facing numbers of problems in our country like lack of investor’s awareness due to less financial literacy, investors are interested to invest in nonfinancial assets, available, mutual fund schemes are not catering the needs and expectations of investors, dominance of unorganized investment avenues, availability of insufficient investment advisors, etc. Based on the study and analysis suggests and recommends to overcome the challenges which are being faced by mutual funds industry in India.

scholarly journals A Comparative Study on Performance of Open and Close-ended Mutual Funds in Pakistan

2015 ◽  
Vol 1 (1) ◽  
pp. 300
Author(s):  
Waqas Ahmad ◽  
Muhammad Sohaib Roomi ◽  
Muhammad Ramzan ◽  
Muhammad Zia-ur-Rehman ◽  
Sajjad Ahmad Baig
Keyword(s):  
Financial Crisis ◽  
Comparative Study ◽  
Mutual Funds ◽  
Mutual Fund ◽  
Portfolio Performance ◽  
Sample Period ◽  
Market Portfolio ◽  
Fund Industry ◽  
Mutual Fund Industry ◽  
Better Than

This paper is based on the comparison of Pakistani open-ended and close-ended mutual funds performance. That study focus on income, balance and equity schemes of open-ended and close-ended mutual funds. The performance of these funds evaluates using Sortino measure, Shrape measure, Treynor measure, Jenssen differtial measure and Inforamtion measure. The sample for the study consists of 73 funds from 2007 to 2012. Results show open-ended mutual funds performance is better than close-ended mutual funds. KSE (market portfolio) performance is grater over the all sample base mutual funds. Most risk adjusted funds returns are negative, which probably due to mutual fund industry set back by financial crisis during sample period.  

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.

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