Mutual Fund Investors Research Articles

Analysis of Mutual Fund Investment Performance in the Ability to Regulate Higher Liquidity Increases in Indonesia

One indication of inclusive liquidity or vice versa is to detect investment patterns. The research method is descriptive-quantitative. The population taken is mutual funds that are selected based on the best return in 2022 and those that are publicly published in the Financial Services Authority (OJK). Following are the results of an analysis of mutual fund investment performance in the ability to regulate a higher liquidity increase in Indonesia in 2022-2023. Fixed Income Mutual Funds: Syailendra Premium mutual funds show good performance in generating relatively stable returns. However, the Trimegah Fixed Income Plan mutual fund has a poor performance with higher volatility and lower returns. Index Funds: BNP Paribas Sri Kehati Mutual Funds show good performance with high returns and controlled volatility. The Allianz SRI KEHATI Index Fund mutual fund also performed well. However, Danareksa Index Syariah Mutual Funds showed poor performance and high risk in that period. Equity Funds: Schroder Dana Prestasi Plus mutual funds provide good returns with more controlled risk compared to stock market indices as a whole. The Sucorinvest Equity Fund mutual funds show poor performance with negative returns. Money Market Mutual Funds: Indonesian Sharia Money Market Major Mutual Funds can be a minimal choice. Likewise with the Sucorinvest Sharia Money Market Fund mutual funds. So in general terms, Index Funds and Money Market Mutual Funds show better performance than Fixed Income Mutual Funds and Mutual Funds in general.

Impact of COVID-19 on Mutual Funds in India

The global impact of the COVID-19 pandemic has left an indelible mark on various sectors, resulting in a significant downturn across most industries, with the notable exception being the pharmaceutical sector. This widespread economic turbulence has created a period of considerable uncertainty for investors in mutual funds. This research endeavours to conduct a comprehensive and in-depth analysis of the prevailing market conditions in the aftermath of the COVID-19 pandemic, with a particular focus on the mutual fund landscape. The primary objective is to scrutinize the circumstances faced by both individual investors and mutual fund trusts. Specifically, this article seeks to delve into the extent to which the pandemic has influenced the Mutual Funds Industry in India. It aims to draw comparisons between the situations that prevailed before the outbreak of Covid-19 and those that emerged in its wake. To collect and evaluate the necessary data for this analysis, the study has carefully selected the time frame spanning from December 2019 to June 2021. This period encompasses critical phases of the pandemic and its economic repercussions. The research relies on secondary data obtained from the official website of AMFA (Association of Mutual Funds in India), which offers a chronological record of Net Asset Management values. The results of this study aim to provide precise, insightful, and comparative information within the specified study period, shedding light on the impact of the pandemic on mutual fund investments in India.

Role of Herd Behavior on Investment Decision of Mutual Fund Investors in India - An Empirical Study

Behaviour finance helps to understand the attitude and perception of investors on their investment decisions. Every investor differs from others in all the aspects due to a range of factors like demographic and socio-economic background. An optimal investment decision plays a vital role and is a major deliberation.
 This paper analyses the role of herding behaviour on Indian mutual fund investors. By referring to psychology and pointing out the imperfections of a human mind, it reveals mistakes committed by both individual and professional investors.
 This study captures the impact of herding behavior and overconfidence biases on the investors’ decision-making in India The proposed study will collects the necessary data through questionnaires distributed among 113 respondents who were investing in mutual fund. The results show that overconfidence and herding bias have significant positive impact on investment decision. Overall results conclude that individual investors have limited knowledge and more prone towards making psychological errors. The findings of the study also indicate the existence of these four behavioral biases on individual investment decisions. This study will be helpful to financial intermediaries to advice their clients.

Examining the Relationship Between Financial Knowledge, Risk Tolerance, and Past Behavioural Bias on Investors Actual Investment Behavior

Purpose: The present study aims to determine the factors influencing investment intention and actual investment behaviour in mutual funds. The study uses financial knowledge and risk tolerance as moderators and past behavioral bias as a mediator.
 
 Theoretical framework: The Theory of Planned Behaviour (TPB) appears to have become a very useful model for predicting various investing behaviours. Therefore, the present utilises the TPB model to analyse mutual fund investment behaviour.
 
 Design/methodology/approach: The convenience sampling method was used to collect respondents from a population of 582 retail investors through questionnaire survey This research used partial least squares structural equation modelling (PLS-SEM) as the main method of data analysis using SmartPLS 4.
 
 Findings: Attitude, financial knowledge, and risk tolerance emerged as the most important determinants of mutual fund investment intention. This highlights the significance of creating favorable conditions in terms of accessibility, which may encourage and ease the decision of investors to purchase mutual funds.
 
 Research, Practical & Social implications: Marketers can explain how their mutual fund offerings would help both the market and investors. Marketers should prioritize proper communication about the benefits of mutual funds to investors, as communication is regarded as a critical tool for the success of mutual fund products.
 
 Originality/value: To understand individual investors' intentions to engage in mutual funds, the impact of attitude, subjective norms, and perceived behavioural control on investor intentions and, actual investment behaviour were hypothesised and analysed, financial knowledge and risk tolerance functioning as moderators. Additionally, past behavioural bias is a mediator.

The effect of financial literacy on long-term recognition and short-term trade in mutual funds: Evidence from Japan

We explore how financial literacy affects mutual fund investments through unique survey data from a broad spectrum of Japanese households. Our evidence reveals the dual effects of literacy on investments over long and short horizons. While the acquisition of financial knowledge promotes long-term investment in mutual funds, it also has the side effect of encouraging short-term investment. Specifically, people with high financial literacy share a fundamental recognition that mutual funds are suitable for long-term wealth creation. However, highly literate people intend to sell mutual funds immediately after short-term price appreciation, which could lead to frequent trading turnover. This is consistent with the knowledge bias effect whereby knowledgeable people falsely react to information, contrary to long-term investments.

The Agency Tax Costs of Mutual Funds

In the intermediated economy of the twenty-first century, retail mutual fund investors cede investment and voting decisions to institutional investors who manage the funds. As a result, actions undertaken unilaterally by financial intermediaries dictate the tax liability of passive individual investors. This Article argues that the tax decisions of institutional investors are guided by their own tax considerations rather than by the tax considerations of those beneficiaries who own mutual funds through conventional taxable accounts. Because these beneficiaries, unlike the institutional investors, are tax-sensitive, the diverging incentives give rise to agency tax costs. These agency tax costs arise from the institutional investors’ trading decisions and stewardship activities, as well as their voting behavior. Because these investors regularly vote on corporate mergers and acquisitions (M&A), voting outcomes on these transactions are distorted. The structure of M&A deals, the method of payment used in such deals, and even premiums paid to sellers are skewed because the votes of passive tax-sensitive investors are cast by tax-insensitive institutional investors. As a result, institutional investors not only fail to replicate the tax outcomes that tax-sensitive investors could have achieved had they owned stock directly, but they also fail to achieve the same corporate voting outcomes. This Article proposes several options for mitigating agency tax costs. These options include mandatory separation of funds based on the tax profile of the beneficiaries, heightened tax disclosure by mutual funds, decentralization of votes in mutual fund sponsors and pass-through voting systems. These alternatives would reduce the agency tax costs of mutual funds without imposing new agency costs on tax-insensitive shareholders who also rely on institutional investors for portfolio management.

The Dollar Cost Averaging, Lump Sum, and Value Averaging Strategies in Mutual Fund Investments

Investment strategy and portfolio management are crucial considerations when investing in mutual funds. This research aims to analyze the effectiveness of achieving optimal returns by simulating dollar cost averaging, lump sum, and value averaging approaches. This analysis is conducted about the performance of a mutual fund portfolio, utilizing the Sharpe and Treynor methods. The research sample employs a purposive sampling technique, selecting the top 5 mutual funds in terms of performance, managed by different investment managers in the year 2022. Simulations are being conducted over three specific periods. In addition to mutual funds, a comparative analysis was conducted involving the Jakarta Composite Index (JCI) and 10-year government bond yields (SUN). The simulation results on equity funds for the three periods indicate that the Lump Sum investment method outperforms dollar cost averaging and value averaging, particularly over 6 years. This finding is further corroborated by the Kruskal-Wallis test, which highlights a significant variance in return performance. The results of the Sharpe and Treynor investment methods exhibit significant differences, as confirmed by the Mann-Whitney test. Lastly, regarding benchmark comparisons, the performance of equity funds surpasses that of the benchmark.

NEXUS BETWEEN INVESTOR’S RISK BEARING CAPACITY AND INVESTORS' CHOICE OF PORTFOLIOS

An attempt is made through this study to identify the risk bearing capacity of retail investors and to evaluate how it affects the portfolio choices of those investors. In addition to examining the variations in investment avenues that investors choose to include in their portfolios due to their risk-bearing capacity, this study aims to investigate the influence of various demographic characteristics on risk bearing capacity. The current study was conducted among individual investors in Kerala by conducting a survey among 120 individual investors in Kerala using a structured questionnaire. The results of this study showed that an investors ability to take on risk depends on their gender, line of work, and monthly income. Further it was found that investors who are ready to take high risk invests more in real estate and shares compared to other risk categories. Investors who are moderate to high risk takers made their investment in mutual funds. All other investors made their investments in safe avenues like bank deposits, postal savings, provident fund, insurance, etc. KEYWORDS: Investors, investments, portfolio, risk, risk-bearing capacity

External Factors Influencing on the Development of Mutual Funds in Kazakhstan

This study explores the potential for the development of mutual funds in Kazakhstan by analyzing external factors such as regulatory policies, market conditions, and geopolitical events. The increasing household savings rate in Kazakhstan and growing foreign investment in mutual funds suggest a positive outlook for the industry. The aim of this study is to explore and analyze the external factors influencing the development of mutual funds in Kazakhstan and their potential implications for investors and the broader financial market. Additionally, the study aims to investigate the factors that influence investors' behavior in selecting mutual funds over other investment vehicles such as bank deposits. The study also seeks to develop and test hypotheses regarding the impact of external factors, such as time horizon, investment knowledge, and risk capacity, on the development of mutual funds in Kazakhstan. The research is based on a survey of professionals from the finance and banking industry in Kazakhstan, and the results indicate that consistent past performance, size of funds, and cost of transaction are the most important factors for mutual fund selection. The study concludes that the growth in mutual funds in Kazakhstan presents significant opportunities for investors, fund managers, and policymakers, but also highlights the need for continued research into the factors influencing mutual fund performance.

INVESTORS ATTITUDE TOWARDS ONLINE AND OFFLINE TRADING OF MUTUAL FUNDS

Mutual fund as an investment avenue provides a platform to the investor who do not want to take high risk on their hard earned investment. In India, mutual fund industry is growing rapidly and this industry has emerged as an important segment of financial market of India, especially in channelizing and mobilizing the savings of millions of individuals into the investment in equity and debt instruments. Mutual fund investment is less risky than investing directly in stocks and is therefore a safer option for risk averse investor. A competent fund manager should analyze investor behavior, perception, and attitude and understand their needs and expectations to gear up the performance to meet investor expectations and requirements. Investment in mutual fund is affected by the attitude of investors and hence the objective of the study is to identify the investor's attitude on mutual fund as an investment avenue and the major findings reveal the factors that influence buying behavior of mutual fund investors.

Generation Z’s Investment Determinants In Sharia Mutual Fund

The Sharia financial industry has developed rapidly, including Sharia banks, capital markets, and other financial products, thus providing more choices to investors who want to invest per Sharia principles. This study investigated the impact of minimum capital, Islamic financial literacy, investment risk, returns, and social media on the investment decisions of Generation Z in Islamic mutual funds. The data was collected from a questionnaire distributed in Jakarta, which yielded 390 valid responses. Regression analysis revealed that minimum capital, financial literacy, investment risk, returns, and social media significantly influence investment decisions in Islamic mutual funds. The study found that social media and investment risk were the two most significant factors affecting investment decisions, followed by minimum capital, returns, and financial literacy. The minimum capital of investors' decision-making in Sharia mutual fund investment has yet to be thoroughly explored in the literature, especially in the Indonesian context. Moreover, this study contributes to the behavior of Gen Z investors in the Islamic investment research area.

Assessing the Return and Risk Equity Mutual Funds: A Case Study from the Financial Markets of Pakistan

Purpose: A mutual fund is a type of trust that combines the assets of a group of persons with similar financial objectives. The funds are subsequently put into assets like stocks, bonds, and other capital market instruments. This study aims to identify the association level among the performance measures, calculate the risk and return of selected mutual schemes, evaluate funds based on execution, and recommend mutual fund investment system that help eliminate the risks.
 Design/Methodology/Approach: The average return of mutual fund schemes was studied for a data period from 2015 to 2022. The study employed Jensen Ratio, Sharp Ratio, and Treynor Ratio to determine the risk and return of mutual funds.
 Findings: The beta shows that the market has particularly defensive investors. The Sharpe ratio for the mutual fund indicates that the industry’s performance is satisfactory but not up to the mark due to multiple political and economic reasons. Similarly, The Jensen differential measure yields remained negative in some periods with different funds. Overall findings thus imply that mutual funds in Pakistan have the potential to generate value. While findings also reveal that some funds perform poorly, the diversification issue is problematic for these funds. This industry has the potential for remarkable expansion on a global scale.
 Implications/Originality/Value: The performance of the funds business and the function of regulatory authorities are critical factors in this sector's success. Excellent results and strict restrictions will boost the popularity of mutual funds in Pakistan.

Constraints for Investors towards Nepalese Mutual Fund

This study aims to evaluate mutual fund investment behavior in the context of the Nepalese mutual fund market. While there have been countless articles exploring the effects of different factors on mutual fund investment behavior of investors, no research has been found in the context of Nepal. The study intends to analyze the relationship of mutual fund awareness level, return perception, country governance, advertisement’s relevance, fund manager’s qualities, and ease of investment towards mutual fund investment behavior. The study found that among the six factors, four factors, namely awareness level, return perception, fund manager’s qualities, and ease of investment, significantly affect mutual fund investment behavior. The relationship has been measured using different statistical tools like regression and correlation. However, country governance factors and advertisement’s relevance show no relationship with mutual fund investment behavior. This study is significant because it fills the gap in the literature on mutual fund investment behavior in Nepal. The findings of this study can help investors, fund managers, and policymakers to make informed decisions regarding mutual fund investment.

Analysis of Active Vs Passive Investment Behavior in Emerging Markets

Responses from 480 Indian respondents, 240 each investing in Mutual Funds and Exchange Traded Funds were studied to assess individual investors behavioral biases with the help of factors of herding, market, prospect, overconfidence and availability bias by using one way MANOVA approach. Results indicate that the Mutual Fund (active investment) investors show significantly higher behavioral biases as compared to Exchange Traded Fund (passive investment) investors in emerging markets. Behavioral biases effect on investments has been extensively studied on individual products, but this article is the first attempt to make comparative analysis of behavioral biases on active and passive investments. Behavioral biases have received little attention in the developing markets and results of this paper have practical implications for policymakers in understanding the dynamic behavior of the active and passive investors and educate the investors for proper investment decisions.

Young Investors' Interest in Mutual Fund Investment

The investment sector has an important role in a country's economy, especially in developing countries like Indonesia. Without good investment prospects, it is difficult to develop economies of scale that will bring prosperity to developing countries. This study aims to find out what are the backgrounds of young investors who are interested in investing in mutual funds in the Seeds and Bareksa applications. Researchers used a qualitative approach with a descriptive method as a research method. The use of the Seeds and Bareksa applications in mutual fund investments has various promotions that increase investor interest in investing in these applications. Promotions are offered such as cashback and discounts when investing and also if you can invite colleagues to join the application and make investments. Many young investors choose the Seeds application over Bareksa in investing in mutual funds online, namely because the ease of features in the application provided by Seeds are easier for young investors to understand.

How does the COVID-19 pandemic change the disposition effect in fund investors?

This study investigates the influence of COVID-19 pandemic on the disposition effect of mutual fund investors in China. Utilizing account data from the Ant Group spanning January 2019 to April 2022, we find evidence of disposition-prone behavior across the entire sample and various investor groups. Moreover, our analysis suggests that pandemic can attenuate the manifestation of the disposition effect. We propose three potential drivers for the observed decrease in behavioral bias: i) heightened risk aversion leading to a tendency to realise losses more than gains, driven by fear of a worsening situation; ii) forced sales due to cash shortages triggered by the pandemic; and iii) reduced self-image damage associated with selling at a loss when peer performance is relatively stronger. These findings shed light on the complex interplay between investor behavior and external shocks during pandemic periods.

Does Corporate Cash Holding Level Explain Mutual Fund Flow? Global Evidence

This study investigates the influence of corporate cash holdings on the flow of open-end equity mutual funds. Building on the economic mechanisms that drive investors’ decisions when they construct their portfolio, the study analyses a comprehensive global dataset that includes 13,674 firms and 58,406 funds from 23 countries for the period from 2008 to 2017. Multiple regression models (pooled and fixed effect) are implemented to explore this relationship. The results show that there is a negative relationship between mutual fund flow and corporate cash holdings which indicates the significant role corporate cash holding policies have on the mutual fund industry. This article contributes to the literature by adding a new factor that can explain mutual fund investors’ behaviour. To the best of our knowledge, it is the first study to examine the relationship between corporate cash holdings and mutual fund flow, and one of the few studies to examine the influence of corporate-level decisions on the mutual fund industry. The results could help fund managers to better forecast future fund flow by considering corporate-level policies, namely cash holdings.

Covid-19 and the Goalkeeper of the Indian Economy


 The decision and the conviction to keep the capital markets functioning amidst the uncertainty of COVID-19 lockdown, proved to be a game changer for the Indian economy. The robust systems put in place over decades and reinforced with measures to strengthen systemic integrity during COVID, revived the inherent trust in the Indian markets, especially at the retail level. The buoyant numbers of new trading and demat accounts opened, new investors in Mutual Funds etc. are a reflection of this trust. At a structural level, apart from decreasing dependence on FPI investments, the retail segment has witnessed a secular shift from savings to investment. Additionally, within investments, there is a shift from fixed income to equities. This deepening of the investor base has moved the Indian capital market to a higher orbit igniting a structural shift in the economy. 

Mutual Fund Schemes in India and its Types (Large Cap, Mid Cap, Small Cap)

One of the newest investment instruments on the financial market is mutual fund investing. Concerns about fair returns from various mutual fund schemes are very prevalent among investors. The current study examines the absolute returns of diversified equity funds' large-cap and mid-cap funds over various time periods. 59 large-cap funds and 40 mid-cap funds from various financial institutions have been compiled for various time periods, including 1 day, 1 week, 2 weeks, 1 month, 3 months, and 6 months. Institutions that manage mutual funds are vital to a nation's economic growth. In many industrialised countries, a thriving mutual fund market is the primary driver of economic expansion. India opens its market to various investments in order to offer a wide range of financial products. The performance analysis of mutual funds undertaken by Sharekhan Ltd. is the foundation of this study. In order to invest in bonds, equities, or other sorts of investments, mutual funds use the money from investors. They aid in lowering the investors' transaction costs.Investors don't need to pay attention to the previous performance of mutual funds because it doesn't predict how well they will perform in the future.

Determinants of Investment Behavior of Investors towards Mutual Funds – A Study

The purpose of this paper was to provide empirical evidence on investor behavior towards mutual funds by collecting into account its relationship with age, education, and occupation. A questionnaire was used to collect data from 100 mutual fund investors, and 176 questionnaires were used for the analysis. Furthermore, the simple sampling technique was used to collect data from various locations in Warangal. The findings provide better information and guidance to investors and policymakers on the factors that influence mutual fund investor behavior.