scholarly journals Investor’s Behavior and Mutual Fund - A Study in Cuttack City

2020 ◽  
Vol 8 (4) ◽  
pp. 18-22
Author(s):  
Aditya Prasad Sahoo
Keyword(s):  
Mutual Funds ◽  
Financial Market ◽  
Mutual Fund ◽  
Growth And Development ◽  
Full Disclosure ◽  
Economic Growth And Development ◽  
Fund Managers ◽  
Investment Plan ◽  
Growing Economy ◽  
Equity Option

In the fastest-growing economy of India, the mutual fund industry puts an emerging footprint in economic growth and development. Mutual funds create a simple and viable path for saving and investment. The mutual fund includes various investment benefits like liquidity, timely return, fund diversification, widespread analysis monetary allocation vis-à-vis a full disclosure of fund management. There are various investment products available for investment in the financial market. However, all these investment products must be able to meet an investor’s expectations? Hence to know the investor’s perception and expectation, it is necessary to study the implications of mutual funds from a unique perspective. This paper explains how different factors are affecting an individual’s perception of mutual funds. As per the findings, individuals are more inclined to traditional investment than an investment in a mutual fund. Those who have invested in mutual funds, most of them were selected equity option and Systematic investment plan or SIP. Another finding is that investors don’t want to analyze the inherent risks associated with the investment and need their fund managers and broker’s advice.

A Critical Analysis of Selected Public and Private Mutual Fund Schemes in India

2019 ◽  
Vol 118 (8) ◽  
pp. 28-34
Author(s):  
Dr. V. Murali Krishna ◽  
Dr T. Hima Bindu ◽  
Dr. Ravikumar Gunakala
Keyword(s):  
Mutual Funds ◽  
Capital Market ◽  
Mutual Fund ◽  
Portfolio Diversification ◽  
Financial Intermediaries ◽  
Public And Private ◽  
Fund Managers ◽  
Fixed Base ◽  
Banking Institutions ◽  
Different Levels

Mutual Fund Industry is one of the emerged dominant financial intermediaries in Indian Capital Market. The main objective of investing in a mutual fund is to diversify risk. Though the mutual fund invests in diversified portfolio, the fund managers take different levels of risk in order to achieve the schemes objectives. Mutual funds allow portfolio diversification and relative risk management through collection of funds from the savers/investors, the same investing in equity and debt stocks. This type of invested funds is managed by professional experts called as fund managers Funds are categorized as income should fixed base in India are a kind of mutual fund which makes investment in debt securities that have been issued to the corporate, banking institutions and to government in general

Investor Sentiment and Flows into Treasury Funds

2018 ◽  
Keyword(s):  
Mutual Funds ◽  
Financial Market ◽  
Mutual Fund ◽  
Explanatory Power ◽  
Investor Sentiment ◽  
Fund Flows ◽  
Inflation Expectations ◽  
Relative Response ◽  
Financial Market Risk ◽  
Blue Chip

The author compares the relative response of Treasury fund flows to the sentiment-prone Michigan Survey of Inflation Expectations and to the Blue Chip Survey of Financial Forecasts, a professional forecast of inflation. The Treasury market is an ideal subject for examining whether or not sentiment affects flows: it is highly liquid, making it unlikely that it is hard to arbitrage, and inflation is the primary factor affecting its returns. Using mutual fund inflows into TIPs and Treasury mutual funds that occurred between January 1991 and June 2011, the author finds that the Michigan Survey is insignificantly related to flows into inflation-indexed TIPs and is positively related to flows into nominal Treasury funds. The Blue Chip Survey does not have incremental explanatory power. The evidence is consistent with a combination of a hedging motive and a flight to liquidity triggered by information in the Michigan Survey about households’ perception of financial market risk. The two motives reinforce each other in driving flows into nominal Treasury funds when the Michigan forecast of inflation is high, while they appear to cancel each other out in determining flows into the illiquid TIPS market.

scholarly journals MANAGERIAL ABILITIES AND FACTOR INVESTMENT STYLE PERFORMANCES OF MALAYSIAN MUTUAL FUND MANAGERS

2021 ◽  
Vol 6 (1) ◽  
pp. 118-135
Author(s):  
Pick-Soon Ling ◽  
Ruzita Abdul-Rahim
Keyword(s):  
Mutual Funds ◽  
Portfolio Management ◽  
Mutual Fund ◽  
Market Timing ◽  
Stock Selection ◽  
Investment Style ◽  
Fund Managers ◽  
Equity Mutual Funds ◽  
Timing Ability ◽  
Stock Picking

Background and Purpose: Studies focusing on mutual fund managerial abilities and investment style strategies are still scarce in the literature. Thus, this study aims to provide new evidence and insights into the managerial abilities and investment style performances of Malaysian fund managers.   Methodology: A total of 444 Malaysian equity mutual funds (EMFs) were evaluated using Carhart’s model incorporated with Treynor-Mazuy (T-M) and Henriksson-Merton (H-M) market timing models for the study period, from January 1995 to December 2017.   Findings: Fund managers displayed superior stock selection skills with 32 percent and 43 percent of funds for T-M and H-M respectively, with perverse market timing ability which accounted for 39 percent and 42 percent of funds for T-M and H-M respectively. Perverse timing ability had reduced the superior stock-picking skills of fund managers. This suggests that the EMFs performance could further improve if respective fund managers perform better in market timing ability. The finding also indicates that size effect (SMB) and value effect (HML) play significant roles in investment style strategies, while results of momentum factor (WML) propose that Malaysian fund managers have followed the contrarian strategy.   Contributions: This study contributes in several ways especially in the literature of portfolio management as the evidence is obtained from the largest mutual funds sample size and the longest study period. Moreover, this study also used the highest frequency data to study the effects of market timing which were overlooked in previous studies.   Keywords: Adjusted carhart, Malaysian market, market timing, mutual fund, stock selection.   Cite as: Ling, P-S., & Abdul-Rahim, R. (2021). Managerial abilities and factor investment style performances of Malaysian mutual funds.  Journal of Nusantara Studies, 6(1), 118-135. http://dx.doi.org/10.24200/jonus.vol6iss1pp118-135

Style and Skill: Hedge Funds, Mutual Funds, and Momentum

2020 ◽  
Vol 66 (12) ◽  
pp. 5505-5531 ◽  
Author(s):  
Mark Grinblatt ◽  
Gergana Jostova ◽  
Lubomir Petrasek ◽  
Alexander Philipov
Keyword(s):  
Mutual Funds ◽  
Hedge Funds ◽  
Mutual Fund ◽  
Hedge Fund ◽  
Fund Performance ◽  
Short Sales ◽  
Fund Managers ◽  
Liquidity Provision ◽  
Stock Picking ◽  
Hedge Fund Performance

Classifying mandatory 13F stockholding filings by manager type reveals that hedge fund strategies are mostly contrarian, and mutual fund strategies are largely trend following. The only institutional performers—the two thirds of hedge fund managers that are contrarian—earn alpha of 2.4% per year. Contrarian hedge fund managers tend to trade profitably with all other manager types, especially when purchasing stocks from momentum-oriented hedge and mutual fund managers. Superior contrarian hedge fund performance exhibits persistence and stems from stock-picking ability rather than liquidity provision. Aggregate short sales further support these conclusions about the style and skill of various fund manager types. This paper was accepted by Tyler Shumway, finance.

Mutual Fund Voting and Pension Ties : Evidence from Proxy Voting

2017 ◽  
Vol 25 (2) ◽  
pp. 201-228
Author(s):  
Heejin Park
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Pension Plan ◽  
Positive Relation ◽  
Fund Managers ◽  
Proxy Voting ◽  
Family Level ◽  
Level I ◽  
The Individual ◽  
Business Ties

Because mutual funds are the largest equity holders and because the retirement assets that are managed by mutual funds have been growing, mutual fund managers may have more incentives to support management in order to attract and retain pension business. I explore whether pension business ties have an impact on voting behaviors of mutual funds by examining the link pension business ties between mutual funds and the firms to actual mutual fund voting outcomes. At the fund family level, I find a positive relation between pension ties and mutual funds’ voting support for management. This relation becomes stronger when there is a voting divergence among funds within the same families. At the individual fund level, I find that individual funds are more likely to vote with management if they are included as one of the investment options of the pension plan of their portfolio firms. This suggests that the SEC should at least consider the recent petition from the AFL-CIO proposing that the SEC require mutual funds to disclose business ties with the firms in which they invest.

scholarly journals Investing in the “New Economy”: Mutual Fund Performance and the Nature of the Firm

2014 ◽  
Vol 49 (1) ◽  
pp. 165-191 ◽  
Author(s):  
Swasti Gupta-Mukherjee
Keyword(s):  
Stock Returns ◽  
Mutual Funds ◽  
Mutual Fund ◽  
Small Firms ◽  
Negative Impact ◽  
New Economy ◽  
Fund Performance ◽  
Learning From Experience ◽  
Fund Managers ◽  
Physical Assets

AbstractAlthough stock returns of intangibles-intensive firms tend to exceed physical assets-intensive firms, risk-adjusted returns of actively managed mutual funds significantly decrease (increase) with their portfolios’ exposure to intangibles-intensive (physical assets-intensive) firms. Fund managers tend to exhibit skill when they focus on difficult-to-value (e.g., small) firms, except when the firms are intangibles-intensive. In sum, the worst-performing funds are in areas of the market that seem to offer ample opportunities for professional investors due to exacerbated mispricing. The negative impact of investments in intangibles-intensive firms on fund performance appears to be driven by extrapolation bias and decreases with learning from experience.

scholarly journals The Impact of Macroeconomic Variables on Mutual Funds Performance in Ghana

2021 ◽  
pp. 34-53
Author(s):  
Cai Li ◽  
Rosemond Atampokah ◽  
Helena Akolpoka ◽  
Priscilla Avonie ◽  
Baku R. Kwame
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Fund Performance ◽  
Foreign Portfolio Investment ◽  
Macroeconomic Variables ◽  
Macroeconomic Conditions ◽  
Fund Managers ◽  
The World ◽  
World Champion ◽  
The Impact

Development across the globe has been an agenda many citizens of the world champion irrespective of the area, sector or discipline within which it is being advocated. Politically, socially, and in the world of economics, mutual fund has gained significance within country’s economic environment. The phenomenal growth in the financial market of mutual funds can be attributed to the increase in the various financial schemes available, improvement in fund mobilization, as well as the growth of investments in the country. We examined the impact of macroeconomic variables on mutual fund performance of all mutual fund companies in Ghana over the period of 2008 to 2016. We performed correlation analysis, hence examined the co-movement of the returns from the selected funds with the key macroeconomic variables. We find macroeconomics variables positively affect the returns of funds. The effect comes by the amount of money available for investments. We further find exchange rate as the strongest macroeconomic variable affects the performance of mutual funds in Ghana. We established that Ghana receives a significant amount of foreign portfolio investment (FPI), where investors in other countries bring in their money to make investment on our financial markets. Our results provide evidence for fund managers on approach in dealing with macroeconomic conditions and its volatilities.

scholarly journals Growth and Value Effect on Jakarta Islamic Index: Analysis towards Performance of Sharia Equity Mutual Fund

2019 ◽  
Vol 11 (1) ◽  
Author(s):  
Sylva Alif Rusmita ◽  
Marhanum Che Mohd Salleh
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Secondary Data ◽  
Additional Insight ◽  
Risk And Return ◽  
Fund Managers ◽  
Index Analysis ◽  
Asset Value ◽  
Net Asset Value ◽  
Value Effect

This study provides evidence that value and stocks’ growth able to explain Net Asset Value of Shariah Mutual Fund. It is important for investment managers and investors to estimate future profit or loss that may happen on their mutual funds prior they venture into the investment platform. This study therefore is conducted to prove that factors including value and growth may affect the future profit of Shariah Mutual Funds. Based on quantitative analysis with secondary data from companies indexed in the Jakarta Islamic Index and Sharia Mutual Fund from year 2013 to 2017, it is found that both growth and value of stock have equally affected the profit of Sharia Mutual Funds. In addition, growth of stock has a larger R-Square than its value which means that the investors or fund managers would need to observe the stock growth more often than its value in order to predict future profitability of Shariah funds.  It is expected that the results of this study can provide additional insight to investment managers when choosing a portfolio for investors. For investors, this information is useful to predict the risk and return that they will receive from the investment.

scholarly journals Sub-Par Performance In A Sub-Prime World? A Recent Comparative Performance Analysis Of Real Estate Mutual Funds Vs. Common Stock Mutual Funds

2011 ◽  
Vol 7 (8) ◽  
Author(s):  
James L. Kuhle ◽  
Rafiqul Bhuyan
Keyword(s):  
Real Estate ◽  
Mutual Funds ◽  
Mutual Fund ◽  
Font Size ◽  
Comparative Performance ◽  
Mutual Fund Managers ◽  
Fund Managers ◽  
Equity Mutual Funds ◽  
Real Estate Investments ◽  
Real Estate Assets

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-family: Times New Roman;"><span style="font-size: 10pt; mso-bidi-font-style: italic;">Historically, </span><span style="font-size: 10pt; mso-bidi-font-style: italic; mso-ansi-language: EN;" lang="EN">little evidence has been found to suggest that real estate investments exhibit superior returns. Further, it appears that real estate mutual fund managers do not possess the ability to consistently beat benchmark averages. However, there have been mixed results for REITs indicating they might be characterized by inefficiencies that could be exploited by informed fund managers. In this analysis, we examine whether mutual fund managers who have concentrated in real estate assets have statistically outperformed other categories of equity mutual funds as well as the S&amp;P 500 and various NAREIT Indexes. </span></span></p>

Financial Market Reforms in Nepal and Its Presence in South Asia

2016 ◽  
pp. 195-223
Author(s):  
Bishnu Prasad Gautam
Keyword(s):  
Financial Market ◽  
Financial Institutions ◽  
Financial Services ◽  
Growth And Development ◽  
Market Reforms ◽  
Policy Reforms ◽  
Economic Sectors ◽  
Economic Growth And Development ◽  
Macroeconomic Indicators ◽  
Financial Market Reforms

Financial market is the backbone of the economy, hence is crucial for the economic growth and development of any country. The financial sector also entails the seeds of financial crisis that can spill over across the rest of economy. Though the interaction between various economic sectors is crucial, it requires timely assessment of risks and redressed. This chapter attempts to capture the sequencing and implementation of financial market reforms in Nepal and briefly examine its consequences. The evidence confirms that reforms do not only mean the institutional and policy reforms but also manifests in terms of increase in the number of financial institutions, expansion in the outreach of financial services and products in terms of quality and quantity as well as improvement in the soundness of macroeconomic indicators. Finally, it argues for the continuation of reforms and consolidation in the financial markets to make the system resilient in changing contexts.

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