Abstract
The prime goal of this research is to find out the determinants of mutual fund’s success in Pakistan. This study exploits the convenient sampling techniques and the data gathered from fund manager reports, annual reports, and from CDCPL. The sample size of this study relaxed to six Assets Management Companies (AMC)’s from 2013 to 2017. We applied a unit root test for finding the nature of data and check the variation of variable’s mutual performance by Hausman Technique. Moreover, we depicted the association between dependent and independent variables with the help of Constant Coefficient Model. It was concluded that risk-adjusted return, management structure, and expense ratio have a significant impact on the size of fund of selected AMC’S of Pakistan. However, the net asset value found to be negatively related with the size of the fund. This research will help investors, AMC’s and regulatory bodies to understand the dynamics of mutual funds in Pakistan. DOI: 10.15408/ess.v8i2.7431
Highlights
Mutual fund is defined as the collective investment scheme in which many investors put their money in one basket that is managed by fund managers of Asset management companies
Adjusted R-square, indicates that 70.07% variation in mutual performance is described by the variables selected for this study i.e. risk adjusted return, net asset value, expense ratio, and management structure
The investigation incorporated with the selection of 6 well known Assets Management Companies (AMC)’s of Pakistan i.e. National investment trust limited, NAFA, UBL funds, MCB- Arif Habib, Lackson investment management and Al-Meezan investment management limited
Summary
Mutual fund is defined as the collective investment scheme in which many investors put their money in one basket that is managed by fund managers of Asset management companies. The investors are called unit holders who gets unit of the fund at the Net Asset Value (NAV) according to their investment & potential of a mutual fund. In open-end funds redemption and subscription of units are continuous. Where as in close-end funds redemption and subscription can only be utilized at the time of commencement. Asset management companies develop a mutual fund with the approval of regulation authority. Companies launch funds of different nature after a lot of research and critical analysis. Mutual fund can be categorized into 11 different types, which are approved by SECP. A mutual fund can only invest in specific things as prescribed in the classification of a respective category
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