Perception and Satisfaction toward Mutual Fund Investors in Andhra Pradesh

The present study has been emphasized on the investor’s attitude towards mutual fund investments in Andhra Pradesh. The study has categorized the investors in small and large based on the investment criteria. The primary data has been collected and examined with the help of statistical tool of discriminant analysis. The study result stated that the past performance, liquidity and brand equity are the key factors which are playing the vital role in selection of mutual fund schemes for the investments. The investors’ expectations have been analyses and the result reveals that the stable portfolio with returns performance. This paper is useful to the stake holders of mutual fund industry such as asset management companies, investors, regulators and fund managers.

Download Full-text

INVESTORS' PERCEPTION TOWARDS MUTUAL FUND STUDY WITH REFERENCE TO EAST GODAVARI ANDHRA PRADESH

10.36106/paripex/4005138 ◽

2021 ◽

pp. 1-12

Author(s):

G.V.D. N. Prasad Rao ◽

P.V.V. Satyanarayana ◽

D. Suryachandra Rao

Keyword(s):

Mutual Funds ◽

Mutual Fund ◽

Andhra Pradesh ◽

Risk Tolerance ◽

Stock Selection ◽

Fund Managers ◽

Level Of Knowledge ◽

Prevailing Rate ◽

Selection Of ◽

Fund Return

The mutual fund industry in India has registered significant growth since the liberalization of Indian Economy in 1991 and has emerged as a significant financial intermediary.The growing importance of Indian mutual funds may be noted in terms of the increased mobilization of funds and the increasing number of schemes and investors in the industry.The results show that there is a significant association between educational qualification of the investors and the risk tolerance level and occupation of the investors and the risk tolerance level.The results further indicate that there is no significant association between occupation of the investors and the level of knowledge of mutual fund and monthly savings of the investors and the level of knowledge of mutual fund.Therefore, the investors have to consider the prevailing rate of risk free returns and to compare the fund returns with it. Based on this the selection of schemes and the choice of investment avenues can be decided.Due to the fund man timing skill,stock selection ability,imperfect diversification the schemes had suffered with low return. Hence to increase the fund return the concerned fund managers have to improve all these skills.

Download Full-text

Study of Investors’ Preference for the Selection of an Insurance Product

International Journal of Engineering and Management Research ◽

10.31033/ijemr.11.4.7 ◽

2021 ◽

Vol 11 (4) ◽

Author(s):

Pradnya Gugale ◽

Vedashree Mali

Keyword(s):

Life Insurance ◽

Test Sample ◽

Primary Data ◽

Insurance Policy ◽

Related Factors ◽

Statistical Tool ◽

Investment Funds ◽

Innovative Products ◽

Study Zone ◽

Selection Of

Human Being’s life is the most significant asset and life-insurance is the most significant sort of insurance which gives financial protection to theindividualhimself/herself and to his family at the hour of dubious dangers or harm. Life insurance gives both safety and protection to people and furthermore encourages investment funds among individuals. The present exploratory based investigation was chosen with a target to analyze those factors which impact client’s strategy purchasing choice and furthermore examine the inclinations of clients while making decision about insurance policy investment. Different insurance-related factors have been examined in the paper. Also, the said study has been conducted to know the satisfaction level of the clients and also to know the benefit they have been receiving from the company (if any). The information for the research has been gathered from primary data. The study zone is restricted to Maharashtra state and the test sample is 30 investors. The hypotheses have been based on the basis of demographic and the factors related to the insurance-based preference.factors and tested the same with the help of statistical tool T-test. The analyzed data had been produced in the form of a tables and graphs/charts. Insurance agencies should spread more awareness about life insurance, a decrease in the premium amount, and giving more attention to need-based innovative products are a portion of the recommendations which I would suggest. The paper closes with the segment that factors of the individuals play a significant and essential role in choosing the purchase of insurance policies.

Download Full-text

Market states and mutual fund risk shifting

Managerial Finance ◽

10.1108/mf-09-2016-0278 ◽

2017 ◽

Vol 43 (7) ◽

pp. 828-838 ◽

Cited By ~ 2

Author(s):

Marius Popescu ◽

Zhaojin Xu

Keyword(s):

Mutual Fund ◽

The State ◽

Risk Level ◽

Risk Shifting ◽

Portfolio Risk ◽

Past Performance ◽

Content Type ◽

Fund Managers ◽

Bear Markets ◽

Bull Markets

Purpose The purpose of this paper is to explore the motivation behind mutual funds’ risk shifting behavior by examining its impact on fund performance, while jointly considering fund managers’ compensation incentives and career concerns. Design/methodology/approach The study uses a sample of US actively managed equity funds over the period 1980-2010. A fund’s risk shifting is estimated as the difference between the fund’s intended portfolio risk in the second half of the year and the realized portfolio risk in the first half of the year. Using the state of the market to identify the dominating type of incentive that fund managers face, we examine the relationship between performance and risk shifting in a cross-sectional regression setting, using the Fama and MacBeth (1973) methodology. Findings The authors find that poorly performing (well performing) funds are likely to increase (decrease) their risk level in bull markets, while reducing (increasing) it during bear markets. Furthermore, we find that funds that increase risk underperform, while those that decrease their portfolio risk do not. In addition, we find that poorly performing funds that increase (or decrease) their risk underperform across bull and bear markets, while well performing funds that reduce risk during bull markets subsequently outperform. Originality/value The paper contributes to the literature on mutual fund risk shifting by providing evidence that the performance consequence of such behavior is dependent on the state of the market and on the funds’ past performance. The results suggest that loser funds tend to be agency prone or be managed by managers with inferior investment skill, and that winner funds exhibit superior investment ability during bull markets. The authors argue that both the agency and investment ability hypotheses are driving fund managers’ risk shifting behavior.

Download Full-text

Pedigree vs. Grit: Predicting Mutual Fund Manager Performance

Kellogg School of Management Cases ◽

10.1108/case.kellogg.2016.000257 ◽

2017 ◽

pp. 1-6

Author(s):

Péter Esö ◽

Graeme Hunter ◽

Peter Klibanoff ◽

Karl Schmedders

Keyword(s):

Linear Regression ◽

Asset Management ◽

Mutual Fund ◽

Success Factors ◽

Linear Regression Analysis ◽

Fund Manager ◽

Mutual Fund Managers ◽

Fund Managers ◽

Mutual Fund Manager ◽

Starting Point

An asset management company must replace the manager of its two signature mutual funds, who is about to retire. Two candidates have been short-listed. The management team is divided and cannot decide which of the two candidates would make the better mutual fund manager. The retiring manager presents a linear regression model to examine success factors of mutual fund managers. This linear regression is the starting point for the subsequent analysis.Application of linear regression analysis to analyze the performance of mutual fund managers.

Download Full-text

MEASURING ATTITUDE TOWARDS MUTUAL FUND INVESTMENT DECISIONS: EVIDENCE FROM TRIPURA, INDIA

Indian Journal of Finance and Banking ◽

10.46281/ijfb.v8i1.1350 ◽

2021 ◽

pp. 1-12

Keyword(s):

Mutual Funds ◽

Mutual Fund ◽

Investment Decisions ◽

Primary Data ◽

Fund Managers ◽

Study Methodology ◽

Bank Employees ◽

Fund Investment ◽

Improve Attitude ◽

The Impact

The purpose of this paper is to assess the attitude of bank employees in Tripura towards investment in the mutual fund and investigate the impact of attitude on volume of investment. The study methodology is based on the responses of a questionnaire received from 262 employees of banks in Tripura. On the basis of primary data, the attitude of the employees has been assessed and ordinal logistic regression is used to find out the impact of attitude on their volume of investment in mutual fund. It is found that overall attitude of bank employees in Tripura towards investment in mutual fund is favorable. It can also be concluded that attitude and volume of investment in mutual fund is positively related. The study is useful for the fund managers of mutual funds. Once the attitude to employees towards investment in mutual fund is ascertained, then suitable strategy regarding imparting training can be designed to improve attitude towards investment in mutual fund. The study is original in nature.

Download Full-text

Emerging market mutual fund performance: evidence for China

Journal of Asia Business Studies ◽

10.1108/jabs-10-2015-0176 ◽

2017 ◽

Vol 11 (2) ◽

pp. 167-187 ◽

Cited By ~ 4

Author(s):

Zia-ur-Rehman Rao ◽

Muhammad Zubair Tauni ◽

Amjad Iqbal ◽

Muhammad Umar

Keyword(s):

Asset Management ◽

Mutual Fund ◽

Factor Model ◽

Emerging Market ◽

Market Timing ◽

Content Type ◽

Fund Managers ◽

Developed Markets ◽

Timing Ability ◽

Equity Funds

Purpose The purpose of this paper is to find whether Chinese equity funds outperform the market and do Chinese fund managers possess positive market timing ability. This study also aims to investigate whether well-performing (worst) funds of last year continue to perform well (worst) in the following year. Design/methodology/approach Capital Asset Pricing Model and Carhart four-factor model are used for performance analysis, whereas for analyzing market timing ability, the Treynor and Mazuy (1966) and Henriksson and Merton (1981) models are applied. To investigate persistence in the performance of Chinese equity funds, all equity funds are divided, on the basis of performance in the past 12 months, into three equally weighted groups (high, middle and low) and then observed for next 12 months. After that, groups are again rebalanced according to their performance. This study uses a panel regression model for analysis. Findings Chinese equity funds are successful in providing higher than market returns, and fund managers possess positive market timing ability. The authors find that Chinese equity funds do not show persistence in performance as witnessed in developed markets. Well-performing funds (worst funds) of last year do not continue to provide higher (lower) return in the following year. Moreover, the authors detect positive relationship of fund size, age and expense ratio with the fund’s performance. Overall results suggest that emerging market equity funds show better performance than that of developed markets. Practical implications Investors are better off if they invest in equity funds instead of index funds, as results illustrate that equity funds outperformed the market. Further, the strategy of buying well-performing funds of last year and selling poorly performing funds of last year does not look very attractive in China. This study helps investors to understand the Chinese managed funds industry, and such an understanding is also helpful for fund managers and asset management companies who use performance information in marketing strategies. Originality/value This is the first study to investigate the performance persistence in Chinese equity funds and also contributes to the literature about the performance and market timing ability of equity funds. The study takes the sample of 520 equity funds for the period from 2004 to 2014, which includes a period of financial crisis of 2008.

Download Full-text

Do Mutual Fund Managers Have Asset Management Skills? Evidence from New Measures on Crisis Management and Directional Trading

SSRN Electronic Journal ◽

10.2139/ssrn.1470497 ◽

2009 ◽

Author(s):

Andreas G. F. Hoepner ◽

Stefan Zeume

Keyword(s):

Crisis Management ◽

Asset Management ◽

Mutual Fund ◽

Management Skills ◽

Mutual Fund Managers ◽

Fund Managers

Download Full-text

Intelligent Cricket Team Selection by Predicting Individual Players’ Performance using Efficient Machine Learning Technique

International Journal of Engineering and Advanced Technology - Regular Issue ◽

10.35940/ijeat.c6339.029320 ◽

2020 ◽

Vol 9 (3) ◽

pp. 3406-3409

Keyword(s):

Machine Learning ◽

Team Performance ◽

Performance Prediction ◽

Weather Forecasting ◽

Team Building ◽

Vital Role ◽

Past Performance ◽

Team Selection ◽

Huge Impact ◽

Selection Of

In any game, selection of best players in a team plays vital role in overall team performance. The team selection in any sport is the key task to ensure good performance of the team. Players are selected based on different criteria. In game of cricket selection of players should consider parameters like players own performance, ground condition, weather forecasting, opposition strength and weakness etc. Machine learning can play vital role in players’ performance prediction. Machine learning uses historical data of team performance and past performance of individual players to predict overall performance of team. Prediction of individual player performance helps in team building process. Recently many researchers proposed model for prediction of player’s performance for a game of cricket. Researchers’ uses machine learning approach for prediction. However existing studies omits some vital features related to ground and weather in their study which have potential to make huge impact on player’s performance. We performed detailed study and literature survey to propose efficient performance prediction of players for game of cricket. Our model will help in best team selection and thus improves overall team performance.

Download Full-text

Prepare for the magnifying glass: SEC hikes scrutiny of asset managers – 4 steps to consider

Journal of Investment Compliance ◽

10.1108/joic-01-2015-0012 ◽

2015 ◽

Vol 16 (1) ◽

pp. 49-51

Author(s):

Perrie Michael Weiner ◽

Patrick Hunnius ◽

Grant Alexander

Keyword(s):

Mutual Funds ◽

Asset Management ◽

Hedge Funds ◽

Mutual Fund ◽

Sudden Change ◽

Protective Measure ◽

Mutual Fund Managers ◽

Content Type ◽

Fund Managers ◽

Asset Managers

Purpose – To discuss the Securities and Exchange Commission’s (SEC’s) likely preparation of new rules to increase the monitoring and oversight of various asset funds, including hedge funds and alternative mutual funds, and recommends protective measure for fund managers to take. Design/methodology/approach – Discusses the SEC’s increasing concerns about risks related to the asset management industry and how those concerns may lead to additional scrutiny and regulation. Recommends four steps for alternative mutual fund managers to take at this time to protect their interests. Findings – The SEC’s potential regulatory action is in response to apparent increasing concern that the multitrillion-dollar asset management industry could create substantial instability to the financial system with the occurrence of a significant event, such as a sudden change in interest rates or widespread investor redemptions. It has been suggested that the proposed sweep of alternative mutual funds is part of a larger strategy by the SEC to bring the alternative mutual funds, and similarly situated entities such as asset managers and hedge funds, under the same regulatory umbrella imposed upon large banks and similarly situated financial institutions in response to the 2008 recession. Practical implications – Preparation will go a long way in dealing with what appears to be a developing mine field of new regulations, and potential enforcement actions, from the federal government. Originality/value – Knowing that increasing SEC scrutiny, such as inquiries and subpoenas, may be just around the corner, the precautionary measures outlined in this article will help alternative mutual fund managers protect their interests.

Download Full-text

Creating Mutual Fund Transparency: The Elimination Of Deceptive Communication

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v8i6.729 ◽

2010 ◽

Vol 8 (6) ◽

Author(s):

Brian D. Fitzpatrick

Keyword(s):

Mutual Fund ◽

Individual Investor ◽

Past Performance ◽

Fund Managers ◽

Time Period ◽

Fund Families ◽

Mutual Fund Families ◽

Total Profit ◽

One Year ◽

The Individual

While the SEC debates the overall merits of forming mutual fund company boards with an independent chairman to go along with 75% make-up of independent board members, I question how this is going to create more transparency for the individual investor.  The real culprit is the flexibility given to mutual fund companies in allowing them to set fees as permitting trading within funds has confused the true cost to the consumer and has added insult to injury.  Dr. Edward O’Neal at Wake Forest states that “the average fund managers cannot recoup these expenses in the form of better performance.”  Gaspar, Massa and Matos (2006) brilliantly show that mutual fund families tend to charge various levels of fees on its member funds, forcing different funds to contribute unequally to the total profit.  They found that during the January 1991 to July 2001 time period, high value funds (i.e., high fees or high past performance) are favored inside fund families by 6-28 basis points of extra net-of-style performance per month (.7% - 3.3% per year) relative to the low value funds (i.e., low fees or low past performance), based on the criteria they used (i.e., fees or past performance).  How can all these deceptive practices be eradicated?  The author proposes a five-step “absolute” process in order to create mutual fund transparency:  the elimination of all soft dollar arrangements; creation of a mutual fund separateness statue to eliminate what Gaspar, Massa and Matos (2006) call the strategic Cross-Fund Subsidization; terminate all 12-B1 fees; eliminate all “rolling performance periods” by forcing one-year calendar performance periods with mandatory fee return to investors if the manager underperforms; and outlaw all front-end and back-end loads, thus forcing marketers to charge a direct commission.  The goal of any transparent system is to protect the consumer, and the individual investor can only be protected by implementing “absolute standards” that will allow no “wiggle room” for mutual fund companies.

Download Full-text