Growth Of Mutual Funds Research Articles

A Study on Growth of Mutual funds in India

A Study on Growth of Mutual funds in India

Productivity and efficiency analysis of Pakistani mutual funds using Malmquist index approach

The key area of this research is to analyze the total factor productivity of mutual funds by using Data Envelopment Analysis (DEA) and also to identify the components which play a significant role in the growth of productivity. Malmquist productivity index approach is a nonparametric method that decomposes the index into components of productivity. The process of decomposition also helps in identifying the contribution of technology and efficiency in the growth of mutual funds in Pakistan. Empirical results suggest that efficiency growth in mutual funds is presenting the upward trend. The individual results of mutual funds showed the divergent trend. The component of pure efficiency change has a great influence on productivity growth except for all others components, and technical change has a smaller number of contributions in productivity growth.

Growth of Mutual Funds in India: A Special Reference to Sectoral Mutual Funds

Growth of Mutual Funds in India: A Special Reference to Sectoral Mutual Funds

Evaluation of Growth of Mutual Funds and Exchange Traded Funds in India

Investors are always baffled about the risk-return characteristics of their investments. There is often the challenge of the alternative between active&passive investments. In case of active mutual funds there are numerous categories of active funds each tracking a different benchmark. It often leads to confusion about how the performance can be compared between one fund to another. The growth of ETFs' has been phenomenal in the recent years due to various advantages of an exchange traded fund compared to the mutual fund as lower cost of management, lesser dependence on fund manager, ease of transaction to name a few. In this context the research analysedthe passive ETF's&prominent Mutual funds both active and passive to justify superior returns at lower risk. The research was based on secondary data, for a period of 5 years i.e. from 2010 to 2015.The various tools used were Sharpe Ratio, Jenson's Alpha, Treynor's Ratio and Tracking error. The study recommends fund houses to implement proactive strategies to reduce tracking error and make ETF's a better alternative for investment.

Growth and Development of Mutual Fund Industry: The Case of Indian Market

Mutual funds are major provider to the globalization of financial markets and one of the main sources of capital flows to emerging economies. Despite their importance in emerging markets, little is known about their investment allocation and strategies. The Indian capital market has been increasing tremendously during last few years. With the reforms of economy, reforms of industrial policy, reforms of public sector and reforms of financial sector, the economy has been opened up and many developments have been taking place in the Indian money market and capital market. In order to help the small investors, mutual fund industry has come to occupy an important place. The main objective of this paper is to examine the importance and growth of mutual funds and suggest some measures to make it a successful scheme in India.

Has the November Effect Replaced the January Effect in Stock Markets?

Results of previous studies support the November effect of the 1986 Tax Reform Act (TRA) on certain stock portfolios. The rapid growth of mutual funds driven by the fundamental changes in the retirement benefit system in past decades may expand the seasonality from portfolios to stock markets and lead to a replacement of the January effect with the November effect in stock markets. Results of this study support the January effect in the large-cap and small-cap stock markets in the pre-TRA period, although the January effect may share a large portion of co-variation with the size effect. However, the November effect is independent of the size effect. Furthermore, a major shifting process of the January effect to the November effect occurs in both the large-cap and small-cap stock markets. The significant result of the November effect in the post-TRA period questions the claim that fund managers are capable in mitigating potential price pressures. Copyright © 2011 John Wiley & Sons, Ltd.

Growth of Personal Savings in Post Liberalization Era in India

India adopted liberalization path and opened up the economy in 1991.There have series of policy reforms to boost savings and investments thus contributing to economic growth. Among others the measures adopted to surge household savings have brought in desired results, one significant contribution in financial domestic savings and more than that inculcation of saving habits among the small investors. This paper examines the impact of policy measures on the growth of mutual funds which were introduced in pursuant to liberalization and also the insurance sector. The study concludes that various policy decisions in terms of fiscal incentives and expansion through competitive spirit helped the growth of personal savings significantly. This has added to the phenomenal growth of domestic savings in general and household savings in particular. All this has ultimately impacted the economic growth of the country.

Analisis Kinerja Dan Potensi Pertumbuhan Return Portofolio Reksadana Saham Dan Reksadana Campuran

The purposes of this study are to analyze the performance of the stock mutual funds and composite mutual funds in Indonesia and to analyze the potency of the return growth of those mutual funds. This study used the monthly return (net asset value-NAV) of 7 stock mutual funds and 11 composite mutual funds, from January 2002 to December 2006*. The monthly composite index of the JSX is used as the proxy for market return. Jensen model is used as the tool to measure of the performance (indicated by Jensen alpha) and the potency of the return growth (indicated by beta). To get an accuracy of the analysis and to avoid bias beta problem, this beta has to be corrected with Fowler and Rorke model, adopted from Capital Asset Pricing Model (CAPM). The main results of this research explained that the performance and the potency of the return growth of the stock mutual funds are higher than the composite mutual funds, during the period of analysis.

What Drives Mutual Fund Asset Concentration?

Is the large influence that mutual funds assert on the U.S. financial system spread across many funds, or is it is concentrated in only a few? We argue that the dominant economic factor that determines this is market efficiency, which dictates that fund performance is size independent and fund growth is essentially random. The random process is characterized by entry, exit and growth. We present a new time-dependent solution for the standard equations used in the industrial organization literature and show that relaxation to the steady-state solution is extremely slow. Thus, even if these processes were stationary (which they are not), the steady-state solution, which is a very heavy-tailed power law, is not relevant. The distribution is instead well-approximated by a less heavy-tailed log-normal. We perform an empirical analysis of the growth of mutual funds, propose a new, more accurate size-dependent model, and show that it makes a good prediction of the empirically observed size distribution. While mutual funds are in many respects like other firms, market efficiency introduces effects that make their growth process distinctly different. Our work shows that a simple model based on market efficiency provides a good explanation of the concentration of assets, suggesting that other effects, such as transaction costs or the behavioral aspects of investor choice, play a smaller role.

THE GROWTH OF INSTITUTIONAL STOCK OWNERSHIP: A PROMISE UNFULFILLED

Despite the substantial growth of institutional ownership of U.S. corporations in the past 20 years, there is little evidence that institutional investors have acquired the kind of concentrated ownership positions required to be able to play a dominant role in the corporate governance process. Institutional ownership remains widely dispersed among firms and institutions in large part because of significant legal obstacles that discourage institutional investors both from taking large block positions and from exercising large ownership positions to control corporate managers. Thus, although much of the growth of institutional ownership since 1980 has been accounted for by the growth of mutual funds and private pension funds, there continue to be strong deterrents to the accumulation and use of large ownership positions to influence corporate managers. Another potentially important factor discouraging concentrated investments are incentive schemes that effectively reward money managers for producing returns that do not vary much from the S&P 500 (or whatever sector the manager is supposed to be representing). Using a very different incentive scheme that offers managers a share of the excess returns (as well as penalties for failure to meet benchmarks), a relatively new class of “hedge funds” has emerged that provides both more concentrated ownership positions and higher risk-adjusted rates of return. To encourage mutual funds to take a more activist corporate governance role and to behave more like hedge funds, the authors recommend that current legal restrictions on mutual funds be relaxed so that mutual funds have a greater incentive to hold large ownership positions in companies and to use those positions to more effectively monitor corporate managers. In particular, the “five and ten” portfolio rules applicable to mutual funds could be repealed and replaced with a standard of prudence and diligence more in keeping with portfolio theory; mutual funds could be given greater freedom to adopt redemption policies that would be more conducive to holding larger ownership positions; and institutional investors could be permitted to employ a variety of incentive fee structures to encourage fund managers to pursue more pro-active investment strategies. The prospect of actively involving institutional fund managers in the corporate governance process may be our best hope for improving U.S. corporate governance.