Abstract
<p>Public Mutual fund (PMF) is an instrument for pooling the funds by issuing units to the investors and investing funds in the capital market to achieve their objectives. To invest in mutual funds is a complicated trade for investors as individual assets are belongs to verity of risks and they are dubious on return on investment. There are only 43 Mutual Funds are available to choose from where the investors can invest. To take the investment decision, the investors need to know which funds are performing better than others, gives more return, which fund is more risky etc. In this study the performance evaluation of public mutual funds carried out by considering fund age, fund size, fund return, fund dividend payout, fund price earnings ratio and fund net asset value (NAV). There are only eight PMFs are available in Bangladesh. For analysis purposes the study investigates 1999 to 2015 operations of PMF. Therefore, this study analyzes 128 a firm years, for measuring PMFs performance. The study reveals that fund size, fund return, fund dividend payout and P/E ratio has significant relation on fund performance. Whereas, fund age and fund NAV has insignificant relation on fund performance.</p>
Highlights
Bangladesh is one of the least developed countries in the world with minimum natural and financial resources
The beta coefficients for fund size, fund age and fund management expertise were significant at conventional levels, with beta = 0.023 (p = 0.154) and beta (NAV) = -.80 (p =.237) which reflects that fund age and net asset value (NAV) are not significantly related with fund performance
Significance testing was performed to determine if the beta coefficients were statistically different for fund size, fund age and fund management expertise
Summary
Bangladesh is one of the least developed countries in the world with minimum natural and financial resources. The establishment of ICB was a major step in a series of measures undertaken by the Government to accelerate the pace of industrialization and to develop a well-organized and vibrant Capital Market securities market in Bangladesh. Mutual funds defined as means of fund established in the form of a Trust to raise money through the sale of units to the public for investment. These funds offer a way to investors which create verity of investment opportunities. Mutual Fund scheme ensures safety of capital, assured regular income, capital appreciation and maximum liquidity through management expertise. For these features Mutual Funds grows rapidly over the tenure
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