Factors Influencing Mutual Fund Performance: Manager Skill, Fees, Fund Size, and Market Conditions

Abstract

Mutual fund performance depends on many things, including the fund manager's skill. Investors must evaluate a manager's past performance, investment strategy, and market adaptability to make informed investment decisions. Remember that past performance does not guarantee future outcomes, and knowing the fund's strategy and manager's approach is crucial for investing. Mutual fund performance depends on fees. Investors should evaluate a fund's management fees, loads, and other charges to determine their influence on returns. Active vs. passive funds and fee transparency can also affect investment decisions. Fund size affects performance differently depending on kind and market. Larger funds may face style drift, liquidity concerns, and operational hazards notwithstanding economies of scale. Investors should carefully analyse a fund's characteristics, investment approach, and how its size may affect its goals. Mutual fund evaluation should also include manager expertise, costs, and historical performance. Investors must examine market dynamics and mutual funds' responses. Making informed investment selections requires understanding the macroeconomic climate, global events, and a fund's capacity to traverse changing market conditions. Investors should also match their investing goals and risk tolerance with the funds they buy, considering more than previous performance.The main goal of the research is toidentify &analyse factors which influence mutual fund performance in the context of manager Skill, fees, fund size, and market conditions.