Abstract

Any investment decision necessitates the prior evaluation of risk and reward attributes associated with investing in a particular security or portfolio of securities. With the plethora of schemes to choose from and increasing awareness amongst the general public, mutual funds have been emerging as a desired investment option in comparison to other investment avenues. However, before making an investment decision, the investor has to examine the various macroeconomic factors. There are numerous variables at the economy, industry and the company level which have an influence on the investment choices of the investors. In this context, the present study attempts to ascertain the macroeconomic factors which have an impact on the mutual funds market. The association between the Mutual funds market and the macroeconomic variables has been analysed using Regression model. Further, the Existence of causal relationship has been analysed using the Granger Causality test. It is apparent from the study that the Real macroeconomic variables considered for the analysis do not have a significant influence on the Mutual funds market and were not found to be reliable to even predict the market movements.

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