Fund Investment Research Articles

Risk Aversion in the Future of Financial Advisory: The Legal Protections for Robo-Advisor Users in Mutual Fund Investments

Risk Aversion in the Future of Financial Advisory: The Legal Protections for Robo-Advisor Users in Mutual Fund Investments

SWOT ANALYSIS IN PRODUCTIVE MANAGEMENT OF CASH WAQF FUNDING AT MICRO WAQF BANK OF ALMUNA BERKAH MANDIRI KRAPYAK YOGYAKARTA

The role of institutions in managing cash waqf provided security guarantees and wider investment of funds. Here, the question arises of how to manage cash waqf funding at Bank Wakaf Mikro (BWM) using the SWOT approach. This research aimed to determine the strength factors, weakness factors, opportunity factors, and threat factors in the implementation of cash waqf fund management by BWM Almuna Berkah Mandiri Krapyak. This research was a type of field research using qualitative descriptive methods. Data collection techniques were observation, interviews, and documentation. Meanwhile, the data analysis technique was obtained from various sources through triangulation and carried out continuously until saturation. The results of this research could conclude that the strength factors in managing cash waqf funding at BWM Almuna Berkah Mandiri were good human resources and infrastructure. Meanwhile, the weak factor was that social media management was not running well, so promoting customer products was less than optimal. The opportunity factor was the ease of technology, where customers would find it easy to get information from the Micro Waqf Bank. Finally, the threat factor in managing cash waqf funding was the existence of customers who were in trouble, where customers needed to make installment payments at the agreed time.

Impact And Interaction Between Demographic Variables and Behaviour Bias on Mutual Fund Investment Decision Among Academicians

The impact of demographic variables and biases on investment performance can guide personalized investment strategies and product development within the financial services sector, catering to the unique needs and preferences of academicians as investors. With the growing importance of mutual funds in investment portfolios and the prevalence of behavioral biases influencing decision-making processes, understanding how demographic factors intersect with these biases is crucial. Moreover, the influence of demographic factors on these biases and their subsequent impact on investment outcomes remain underexplored within this specific demographic group. By uncovering how demographic characteristics intersect with behavioral biases in mutual fund investment decisions among academicians, it can inform tailored financial education programs aimed at mitigating biases and enhancing financial literacy among this demographic. The study seeks to provide valuable insights for both academicians and financial practitioners to improve investment decision-making processes and outcomes. Despite the increasing popularity of mutual funds as investment vehicles, academicians, like many investors, are susceptible to behavioral biases that can impede rational decision-making. The author concluded that addressing these implications has the potential to foster more informed and effective investment decision-making processes, benefiting academicians and the broader investor community alike.

Mutual fund value creation: Insights from the residual income model

Inspired by the residual income model used to assess firms’ value creation in the accounting field, we provide a new estimation approach to infer a fund's skills, value creation, and whether the value created by funds can predict future performance. Using a sample of 2069 active equity funds in China from 2011 to 2022, as predicted by this model, we find that the residual earnings of funds, which represent the value created through fund trading activities, are persistent. Additionally, we observe a strong and positive relationship between residual earnings and semi-year-ahead mutual fund abnormal returns. Specifically, the top quintile portfolio based on residual earnings outperforms the bottom quintile by 2.16 % abnormal returns per year. Furthermore, we note that Chinese mutual funds with higher residual earnings tend to be younger, smaller, and have substantial turnover. These findings are valuable for fund investors seeking to identify high-value funds.

Emerging Market of Nepalese Mutual Fund in Nepal: A Systematic Review

The aim of this research was to determine the current state of the Nepalese mutual fund developing market. Studies carried out between 2010 and 2023 show that the specific topic area has been investigated. The research's dataset comprised 21 articles published in Nepal during a 14-year span. In the review of Researchers found that time restrictions and insufficient information provide obstacles for investors. Risk division is provided by mutual funds, along with other advantages including cash flow, accessibility, efficiency, creativity, and prevention. The safety and liquidity of funds impact investors' opinions of mutual fund investments. Advantages of mutual funds include cost-effectiveness, accessibility, personalization, innovation, transparency, and prevention when it comes to risk segmentation.

Private Equity Investments in Support of Professional Athletes: Developing and Testing a Cross-Country Framework of Sporting and Venture Creation Performances in Countries With a Strong Long-Term Orientation

Overseas financial direct investments (ODIs) have been investigated with explanations of how investors generate a return on investment (ROI) and enable entries to new markets via sports club investments. However, investments in athletes have garnered less attention. This study explores private equity (PE) funds that could support professional athletes’ sporting performance and their second careers as entrepreneurs, actions that require a long-term approach. First, this study builds a sports entrepreneurship framework. Second, this study analyses secondary data on exceptionally strong sporting performance (Olympic Games medals), venture creation performance (the number of unicorns), and long-term orientation. As its theoretical contribution, this paper suggests that the tested framework could help future studies detail theories concerning sports startup ecosystems and agency problems. A managerial implication of the article is that sports club investments could be combined with PE fund investments to athletes in contexts dominated by funding types other than PE.

Determinants of Online Investment Decision in Islamic Mutual Funds: Theory of Planned Behavior (TPB) Approach

The purpose of this study is to analyze the determinants or factors that determine the decision to invest in Islamic Mutual Funds through online platforms, using the Theory of Planned Behavior (TPB). This study measures one dependent variable, namely the decision to invest in Islamic Mutual Funds through online platforms and six independent variables, namely Islamic financial literacy, Islamic mutual fund investment literacy, benefit perception, technological advancement, investment risk and investment return. The research is quantitative in nature, using primary data. Data collection was conducted with the dissemination of questionnaires to respondents in Greater Jakarta Area who have accessed online platforms to invest in Islamic Mutual Funds. This study then uses SEM-PLS (Structural Equation Modeling-Partial least Square) analysis with SmartPLS software to analyze the data. The study shows that Islamic Financial Literacy and Investment Literacy of Islamic Mutual Funds have a negative and significant influence on the decision to invest in Islamic Mutual Funds Online. While the variables of perception of benefits, technological advances, investment risk and investment return have no influence on the decision to invest in Islamic Mutual Funds Online. Thus, the better the level of literacy or understanding of Islamic finance and the investment literacy of Islamic mutual funds, the more people's decisions to invest in sharia-compliant mutual funds through online platforms.

The cumulative prospect theory and fund flows in emerging markets

ABSTRACT This study is the first to examine the efficacy of the Cumulative Prospect Theory value of the past return (CPTV) to explain fund flow in emerging markets funds by considering the impact of fund managers’ characteristics and behavioural biases on fund investors’ investment decisions. Besides, this study also investigates the impact of fund investors’ ability to identify fund managers’ skills. The findings suggest that CPTV has a significant and positive association with subsequent fund flow and emerging market funds’ performance. Notably, the study documents a negative relationship between fund flow and fund size and also highlights that newer funds generate greater fund flows. Furthermore, the findings indicate that investors investing in emerging market funds tend to behave differently, allocate money for alpha, and avoid giving distorted income for factor-related returns to fund managers. The results demonstrate that managers’ skill and portfolio concentration decision affects fund flow and CPTV relationships. The findings illustrate that fund managers who concentrate their portfolio and invest in high CPTV stocks tend to generate higher fund flow than their diversified counterparts.

Forecasting and Error Factor Analysis of the CSI 300 Index Based on the ARIMA Model

The CSI 300 stock index futures are futures contracts with the CSI 300 Index as the underlying asset. The CSI 300 Index represents the overall trend of the Chinese stock market, consolidating a representative variety of stocks for analysis. It is generally believed to reflect the highs and lows of the Chinese stock market, with individual stock price anomalies having limited impact on the overall index. Therefore, studying stock price fluctuations through technical means, focusing on the CSI 300 Index as the research subject, is more appropriate. Correspondingly, it also provides guidance for portfolio operations and institutional or fund investments. Specifically, it plays a guiding role in the research of stock index futures based on the CSI 300 Index. Hence, this paper employs the ARIMA model in time series analysis to establish a model for the CSI 300 Index. Utilizing mathematical methods to process the daily CSI 300 data sampled from January 3, 2023, to December 29, 2023, a one-year period, the ARIMA model is developed using the Python programming language based on economic theory and econometric knowledge. By testing, adjusting, and estimating the model, a reasonable economic interpretation of the model is provided to forecast the CSI 300 Index. Through the analysis of the actual results obtained from this model and the reasons for the differences between the actual values of the CSI 300 Index and the model's predicted values, this study aims to offer valuable insights for enterprises and investors in making relevant decisions.

Integrating Personality Traits and Behavioral Theories in Mutual Fund Investments: Unveiling Investor Dynamics

This article explores the interplay between personality traits, particularly the Big Five model, and the Theory of Planned Behavior (TPB) in shaping individual investment decisions in mutual funds. Utilizing the TPB's framework, the study examines attitudes, subjective norms, and perceived control, linking them to investor intentions. Focusing on India's growing mutual fund industry, the article highlights key industry metrics, indicating robust growth in assets under management and retail participation. Comparisons with developed countries underscore India's untapped potential in mutual fund investments. The research delves into the determinants of investment decisions, considering rationality, socioeconomic factors, and the impact of personality traits. Theoretical frameworks and literature synthesis support the proposed behavior intention model. The findings emphasize the vital role of personality, particularly openness to experience, in influencing investment behavior. In conclusion, the study contributes insights for asset management companies in tailoring schemes to align with investor commonalities. Keywords: Investor, personality traits, Theory of Planned Behavior, Mutual Funds investment

Judging a book by its cover: Fund investors’ physical attractiveness stereotypes and investor behavior

This paper documents that fund investors’ behavior is biased by the physical attractiveness stereotypes that they hold about fund managers. In an experimental setting, we find that although there is no information about highly attractive fund managers outperform their peers, respondents still perceive highly attractive managers to possess superior management skills and are willing to allocate more money to their managed funds. We further find that provision of information in contrast to the assumptions associated with physical attractiveness stereotypes diminishes the bias in investor behavior. When less attractive managers have historical returns that are 4% higher than more attractive managers, investors’ preference for attractive faces is overridden. Empirical evidence obtained using fund market data is consistent with our experimental results.

Potential investments of pension funds in long-term care for the elderly: the case of Croatia

Potential investments of pension funds in long-term care for the elderly: the case of Croatia

The proposed mandatory swing pricing regime and the hard close requirement : Practical considerations

In November 2022, the U.S. Securities and Exchange Commission (the ‘Commission’) proposed rule amendments that would require, among other things, open-end mutual funds to implement a mandatory swing pricing regime under certain circumstances (the ‘Proposals’). To ensure that funds receive order information with sufficient time to make a swing pricing determination, the Proposals would require funds to set a hard cut-off time for the receipt of purchase and redemption orders. Currently, the vast majority of investments in open-end mutual funds are made through intermediaries and retirement plans, such that investors who submit orders to intermediaries and retirement plans before the time the fund has established for calculating its net asset value (NAV) generally receive the same day’s NAV, even if the fund receives the order information from the intermediary or retirement plan after NAV is calculated. This is how mutual fund pricing has operated in the US for over 50 years. The Proposals would upend current operations. Under the Proposals, an investor’s order would have to be received by the fund — not a financial intermediary or a retirement plan — before the cut-off time set by the fund for calculating NAV in order to be eligible for the same day’s NAV. If adopted as proposed, the Proposals would require extensive changes to mutual fund pricing systems and infrastructure in the US. In this paper, we acknowledge the arguments against the Proposals by an overwhelming majority of industry commenters and, without undercutting those arguments, we explore practical, regulatory and compliance considerations for funds seeking to better understand how the Proposals might affect their day-to-day operations.

Cognitive Biases Impact on Investor’s Investment Decision of Retail Mutual Fund Investor

The purpose of this research is to study the effect of Cognitive bias on Investor’s investment decision of Retail Mutual Fund Investor.
 Methodology Adopted:Structured questionnaire was distributed to 1012 Indian mutual fund investors of four states considered financial hubs of India (Delhi/NCR, Mumbai, Bangalore, and Kolkata). Multiple regressions were used to test the model. Validity of instrument was established through CFA.
 Findings: Cognitive Bias (Overconfidence, over-reaction, Herd Effect and Regret Aversion) significant with investor’s investment decision making.
 Research Implications:Results are significant on Indian investors but with different geographic results might different. 
 Originality/ Value: Academic research is still needed to understand the impact of mutual fund investors' cognitive biases on their investment decisions, Biases studied on Equity investors in south India, due to inconsistency in literature the work found to be original.

The Past, Present, and Future of Gulf Sovereign Wealth Fund Investments in China

AbstractThis article explores sovereign wealth fund investments by Gulf Cooperation Council member states in China's equity market. Using data from Chinese stock exchanges, we analyze patterns of shareholding over two decades, across different sectors and among distinct funds, and compare them to their non‐Gulf counterparts. We reveal a gradual upward trajectory in both the scale and diversity of investments by Gulf funds, indicating growing engagement with the Chinese equity market. We anticipate a continuation of current trends, albeit with larger volumes and potential expansions into technological and emerging sectors that align with Gulf interests. We project that the deepening financial linkages between China and the Gulf could give rise to a mini petro‐yuan system operating under the dominance of the American dollar. This does not presage a transformation in China‐Gulf relations but should be understood within the increasing complexity of their broader economic ties. The article is part of a special issue examining the responses of Gulf countries to rising Sino‐American competition, edited by Andrea Ghiselli, Anoushiravan Ehteshami, and Enrico Fardella.

Methodological provision of analysis of the efficiency of investment activities of enterprises

The paper is devoted to the disclosure of the main provisions of methodological support for the analysis of the investment activity of enterprises and practical recommendations on the use of methods for evaluating the effectiveness of the implementation of investment projects for decision-making. Making investment decisions is based on the use of various formalized and informal methods and models, taking into account the following factors: changes in the value of money over time; alternative value of resources; cash flows generated by the project; uncertainty and risk; inflation, price changes and currency exchange rate fluctuations; investment goals and investor psychology; possible changes in project parameters; synergies between investment projects of the enterprise. When forming the list of monitoring indicators, those aspects of the business entity's investment activity that are most important for owners, investors and management organizers were highlighted. It is proposed to form a system of performance indicators of the enterprise's investment activity in accordance with the sphere of investment: production, marketing, technology, organization. The principles of investment activity analysis and recommendations on the procedures for analyzing the effectiveness of project implementation have been formed, the choice of which depends on the management goals aimed at achieving a stable cash flow and ensuring the financial stability of the enterprise. The essential characteristics, advantages and disadvantages of the existing approaches to evaluating the effectiveness of investment projects are revealed. A system of indicators and criteria for the analysis of the effectiveness of investment activities of indicators characterizing the effectiveness of investments depending on the sphere of investment of funds: production, marketing, technology, organization are proposed. Recommendations for choosing a specific method for evaluating the effectiveness of investment projects in the context of achieving the priority goal - maximizing project profitability, risk acceptability and investors' interests are substantiated.

Study on the Mental Care of Rural Empty Nest Elderly under New Urbanization

Today, with the continuous acceleration of new urbanization, the number of rural empty nests is also increasing year by year. The report of the 19th National Congress of the Communist Party of China proposes to improve the basic old-age insurance for urban and rural residents, improve the elderly care system, and ensure that the elderly have a place to take care of. Under the development of this era, it is necessary to protect rural empty nest elderly this group, but we not only pay attention to their material guarantee, but also notice their spiritual care. For the spiritual care of rural empty nest elderly, we should analyse their spiritual demands monolithically, and build a three-dimensional comfort system that is "government-led, fund investment, social worker intervention, self-regulation, and neighbourhood assistance" to solve their spiritual demands.

Advancement and the existing landscape of forensic medicine in Africa: A comparison with developed countries.

This article explores the development and challenges of forensic medicine in Africa, comparing it to developed countries. It addresses limited resources, funding, and a shortage of trained professionals. The growth of forensic investigation capabilities and the challenges of funding and technology access are discussed. Training and education have improved, but disparities remain. Partnerships with developed countries and international organizations are crucial to bridge the gap. A comprehensive legal framework is important, but disparities exist among African countries. Harmonizing forensic laws would enhance cooperation. The role of forensic medicine in the criminal justice system is examined, emphasizing the need to build trust in forensic evidence. International collaboration and capacity building are key to advancing forensic medicine in Africa. Investments in infrastructure, funding, training, and legal frameworks are required. By leveraging partnerships, Africa can develop its forensic medicine capabilities for a fair and effective criminal justice system.

R&D investments in emerging market firms: the role of institutional investors and board interlocks

Despite the increase in institutional investor shareholdings in emerging market firms, their impact on R&D investments has received scant attention in the literature. By integrating agency and resource dependence perspectives, we examine the role of different types of institutional investors and their interactions with board interlocks in shaping their preference for R&D investment in their portfolio firms. We test our hypotheses on a sample of 2,478 Indian firm‐year observations from 2005 to 2019, using various estimation techniques. Our results indicate that different categories of institutional investors have distinct preferences for R&D investment. Specifically, we find that ownership by both foreign institutional investors and mutual fund investors negatively impacts R&D investments in firms. While board interlocks positively moderate the impact of institutional investors such as banks and financial institutions and foreign institutional investors on R&D investments in firms, this moderation is negative in the case of mutual fund investors and R&D investments in firms. We contribute to the understanding of the determinants of R&D investments in emerging market firms, with a specific focus on institutional investor ownership and add to the nascent literature on the interaction between two forms of governance, i.e., ownership and board characteristics, in shaping this firm strategy.

Algorithm-Based Low-Frequency Trading Using a Stochastic Oscillator and William%R: A Case Study on the U.S. and Korean Indices

Using stochastics in stock market analysis is widely accepted for index estimation and ultra-high-frequency trading. However, previous studies linking index estimation to actual trading without applying low-frequency trading are limited. This study applied William%R to the existing research and used fixed parameters to remove noise from stochastics. We propose contributing to stock market stakeholders by finding an easy-to-apply algorithmic trading methodology for individual and pension fund investors. The algorithm constructed two oscillators with fixed parameters to identify when to enter and exit the index and achieved good results against the benchmark. We tested two ETFs, SPY (S&P 500) and EWY (MSCI Korea), from 2010 to 2022. Over the 12-year study period, our model showed it can outperform the benchmark index, having a high hit ratio of over 80%, a maximum drawdown in the low single digits, and a trading frequency of 1.5 trades per year. The results of our empirical research show that this methodology simplifies the process for investors to effectively implement market timing strategies in their investment decisions.