Fund Investment Research Articles

Choice for smart investment in mutual funds: Single- or multi-period performance ranks

This study presents strong evidence of fund performance persistence using a newly proposed multi-period performance rank (MR). The MR is the average of the performance ranks, calculated using multiple performance evaluation periods. With regard to 60-month returns to the performance rank, the performance persists over the next three years. This study explains performance persistence as a combination of fund investors’ behavior and fund managers’ abilities. The MR-based portfolios have low outflows and high turnover rates. MR-based investments are a smart choice for obtaining higher future returns.

Sick with “shareholder value”: US pharma’s financialized business model during the pandemic

US-based pharmaceutical companies claim that they need high drug prices to provide sufficient profits to fund investments in innovation. This argument is consistent with the corporate-finance principle of retaining profits and reinvesting in productive capabilities that is central to our “theory of innovative enterprise” (TIE). The problem is that, for decades, resource allocation at the largest US-based pharmaceutical companies, known as “Big Pharma,” has embraced the agency-theory argument that a company should be run to “maximize shareholder value” (MSV). We use TIE to expose MSV as an ideology of “predatory value extraction” (PVE), which legitimizes price gouging, downsizing the labor force, and tax dodging. In the body of the article, we document that the largest US-based pharmaceutical companies have become highly financialized, using all their profits, and often more, to distribute cash dividends and stock buybacks to shareholders. We then show the extent to which stock-based remuneration incentivizes senior pharmaceutical executives to engage in this financialized behavior. As cases in point, we consider the financialization of the two US-based companies, Pfizer and Moderna, that were centrally involved in the delivery of COVID-19 mRNA vaccines during the SARS-CoV-2 pandemic. We conclude our analysis by placing PVE in the US pharmaceutical industry in the broader context of the US healthcare system and the US economy.

To Study the Mutual Fund Investment Return Against the Rising Inflation in Malaysia

The primary objective in investment had been no doubt to overcome the inflation pressure within the economy over time to avoid losing out purchasing power as well as increasing the dollar value through investing and hence creating higher wealth for the individuals. The benchmark for the rising inflation rate in Malaysia had been concerning for the investors which triggered the motivation of the study to explore the study on mutual fund investment return in comparison against the inflation rate for the country. With this, the quantitative analysis had been introduced with the correlation analysis and regression analysis to test the significance of the relationship between the mutual fund investment return and the inflation rate in Malaysia. The results had shown existence of negative correlation between the two variables but remained not significant from inflation rate to influence the investment return of mutual fund. In addition, the comparative analysis conducted had been evidenced to show greater return on average for the past 11 years of study to surpass the inflation rate in Malaysia. With the higher return on investment for mutual as negative correlation against the inflation growth, it is recommended for the investors to invest in mutual fund especially in the time of recession in the country.

Comparative Study of Stock, Mutual Fund, and Cryptocurrency Investments

Within the realm of investment, investors are presented with a multitude of options in terms of investment vehicles. Three options that are experiencing growing popularity include equities, collective investment schemes, and digital currencies. The literature search was conducted across multiple databases, including PubMed, Web of Sciences, EMBASE, Cochrane Libraries, and Google Scholar, to explore the comparative aspects of stock investments, mutual funds, and cryptocurrencies. Stocks are a type of investment that symbolize ownership in a corporation, offering the possibility of long-term earnings through the firm's expansion and delivery of dividends. Stocks exhibit diverse levels of risk contingent upon the specific firm and industry and are typically more suitable for investors with long-term objectives. Mutual funds are financial instruments that aggregate capital from multiple investors and allocate it into a diversified collection of investments. This service offers automated diversification and is ideal for investors seeking to entrust the management of their portfolio to professionals. Mutual funds are appropriate for both short-term and long-term objectives. Cryptocurrencies are virtual assets that are bought and sold on cryptocurrency exchanges. Cryptocurrencies exhibit a high degree of speculation and volatility, characterized by swift and unpredictable price movements. Investing in cryptocurrencies necessitates a comprehensive comprehension of technical aspects and entails substantial risks, typically regarded as a short-term or speculative investment.

The response of money market fund investors and managers to government shutdowns

The response of money market fund investors and managers to government shutdowns

Professional financial advice and investor behavior during the COVID‐19 pandemic

AbstractEmployees are commonly defaulted into either a homogeneous passive investment such as a target‐date fund, or into a managed account that offers personalization and access to an advisor. Higher performance among investors in target‐date funds suggests a possible behavioral benefit of a passive default that requires no active monitoring by investors. Access to a human advisor and an asset allocation matched to employee risk preferences can also help investors avoid trading after a market decline. This paper explores the relationship between trading activity and advice‐seeking behavior among 5 million US DC participants during the COVID‐19 pandemic, comparing self‐directors and target‐date fund investors to those using managed accounts service. We find participants who use target‐date funds are less likely to phone during a market crash. Participants in managed accounts are the least likely to trade after seeking advice. These findings are consistent with the hypothesis that passive default can improve outcomes where active choice can harm outcomes, and personalized defaults with access to advice can help participants avoid investment mistakes.

Prioritising and planning scale-up research projects targeting non-communicable diseases: a mixed-method study by the Global Alliance for Chronic Diseases upscaling working group

IntroductionGovernments must scale-up evidence-based interventions to reduce the burden of non-communicable diseases (NCDs). Implementation research can help develop contextually appropriate strategies and optimise interventions for scale-up. We aimed to determine...

Exploring the investors' awareness and decision-making in the context of mutual funds and SIP

This research delves into the realm of investor awareness and decision-making within the context of mutual funds and Systematic Investment Plans (SIPs). In an era characterized by financial complexity and a continually evolving array of investment options, there arises an imperative need to comprehend the dynamics that underlie investors' decision-making processes. Our study is dedicated to unveiling the factors that contribute to investor awareness and the key elements that influence their choices in the realm of mutual fund investments and SIPs. Employing a comprehensive questionnaire, we collect insights from a diverse cohort of investors, with the objective of capturing their levels of knowledge, their preferences, and the extent to which various communication channels impact their investment decisions. The discoveries arising from this research hold the promise of providing invaluable insights to financial institutions, investment advisors, and policymakers. By gaining a deeper understanding of the investor's perspective, we aim to enhance financial literacy, customize marketing strategies, and refine the dissemination of information pertaining to mutual funds and SIPs. This, in turn, can empower investors to make well-informed decisions, foster responsible investment practices, and contribute to the overall development of the financial market.

A Fuzzy-Set Qualitative Comparative Analysis of Causal Configurations Influencing Mutual Fund Performance: The Role of Fund Manager Skill

A mutual fund is a common instrument for households and corporations to invest in the financial markets through diversified portfolios of securities. Investing in managed mutual funds involves relying on a fund manager’s knowledge, expertise, and investment strategy to beat the fund’s benchmark. The purpose of this paper is to help mutual fund investors in their fund selection process. The fuzzy-set qualitative comparative analysis (fsQCA) is the methodology applied to identify combinations of factors that facilitate the selection of performing mutual funds. The goal is to determine whether fund manager skill, as measured by Jensen’s Alpha and other qualitative factors, is a key driver of performance. Our research focuses on US-registered equity funds with a global investing scope over a 5-year period (2016–2021), and we combine three mutual fund databases to obtain more complete data while enhancing data accuracy and consistency. The findings reveal that both manager skill and fund size are pervasive factors included in all three successful combinations of sufficiency conditions leading to high-performance funds. In addition, it is verified that manager skill is the only necessary condition to ensure high returns on mutual funds. Investors’ fund selection process is a cumbersome task that can be simplified with the successful recipes provided by the fsQCA model.

The influence of financial literacy and psychological factors on money market mutual fund investment decisions

Indonesia has experienced economic growth after the Covid-19 pandemic, which was accompanied by an increase in the number of first-time investors, especially the millennial and z generations. However, the lack of financial and psychological literacy of each investor, especially beginners who are not mature enough, will affect investment decisions that are not optimal. This study aims to examine the effect of financial literacy and psychological factors on money market mutual fund investment decisions. This research is a type of quantitative research. Methods of data collection by distributing questionnaires to 395 respondents who meet the criteria. The method used is Structural Equation Model - Partial Least Square. From the results of the study it was found that the T test on the independent variable Financial Literacy was 3,455 with a significance of 0.001, which means it has a significant effect on investment decisions, Emotion is 1,487 with a significance of 0.137, which means it does not have a significant effect on investment decisions, Social Interaction is 0.890 with a significance of 0.374, which means it is not significant effect on investment decisions, Considering The Past of 2.769 with a significance of 0.006, which means a significant effect on investment decisions. It is hoped that this research will provide insight to respondents that investment decisions can be measured using the level of financial literacy and psychological factors such as emotions, social interaction and considering the past.

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.

Analysis of the Grey Correlation Between Higher Education and Economic Development

Regional higher education and economic development are inseparable, so it is of great significance to study the correlation degree between higher education and economic development. This paper integrates the relevant evaluation indexes, and uses the grey correlation analysis method to explore the degree of mutual influence between higher education and economic development in Guangxi. The results show that the gross product of primary industry, per capita disposable income of urban residents and urbanization rate are the key factors affecting the level of higher education; the Di-Clark theorem is not applicable to the industrialization development of Guangxi; the increase of institutions and full-time teachers and the investment of education funds are the main driving force for higher education to promote economic development. Finally, to provide policy suggestions for the high-quality development of higher education and economy in Guangxi.

Risk Management Based on Private Equity Fund Investments

Because private equity investment is characterized by non-public and non-transparent, it has many risks in its operation. The article focuses on reviewing the investment risk management of private equity funds, pointing out that phased investment and contractual investment can reduce the moral risk in investment to a certain extent. This article categorizes the common risks of private equity fund investment in China, then discusses the main risks, and puts forward corresponding preventive and management measures for these problems, which aims to further promote the benign development of the private investment industry.

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.

Challenges in Chinas Integration of Rural and Urban Education

The Chinese governments promotion of the integration of urban and rural education is an important measure to solve the problem of urban-rural education imbalance in China. However, there are still some imbalanced issues. Therefore, this article first describes and analyzes the existing imbalances in the construction of educational integration through literature analysis, and then proposes suggestions to address these issues. According to research, there are issues in combining urban and rural education include the loss of students, uneven distribution of educational resources and funds, and gaps in teaching staff. In response to these issues, rural areas need to achieve local urbanization. The government should adhere to the principle of rural priority, evenly allocate education resources and increase investment in education funds. Additionally, government should innovate and improve the rural teacher team. The imbalance in education between urban and rural areas in China can only be resolved in this way, which will also help China better promote the integration of urban and rural education.

Research on the Investment Strategy of Private Equity Investment Fund Targeted Increase in NEEQ — An Empirical Analysis Based on BP and Hopfield Neural Network Model

Private equity investment funds targeted increase in NEEQ has become a new strategy for PE investment. However, the currently adopted Logit regression and one-factor ANOVA models are not suitable for analyzing nonlinear investment activities, and the investment appraisal does not work well. In this paper, all NEEQ companies that implemented private placement in 2017 are used as the study sample. This paper also empirically analyzes the current situation of domestic private equity investment funds based on BP and Hopfield neural network models, then the results of the two models are compared. It is concluded that the accuracy of the BP neural network model can be more than 90%. So, the BP neural network can be used as the optimal model of private equity investment funds investment strategy in NEEQ.

Exploration on Portfolio Selection and Risk Prediction in Financial Markets Based on SVM Algorithm

In order to cope with the complex risk environment of the current financial market, achieve portfolio optimization and accurate risk prediction, this paper conducts effective research using SVM algorithm. This article uses stock data as a sample to empirically analyze the risk return and risk prediction performance of investment portfolio strategies based on SVM algorithm. Compared with traditional index fund investment strategies, the risk resistance of investment portfolio strategies is significantly improved, and the risk return is also stable at a high level. In addition, with the support of SVM algorithm, the risk prediction error level in the financial market remains within a relatively low range. From the perspective of practical applications, the financial market investment portfolio selection and risk prediction based on SVM algorithm has strong feasibility.

6.M. Workshop: Private equity investment in Europe’s primary care sector

Abstract This workshop explores the growing role of private equity funds in Europe's primary care sector. Based on a rapid response report of the European Observatory on Health Systems to the French National Health Insurance Fund (Caisse nationale de l’assurance maladie, CNAM), it offers a platform for sharing examples from across Europe, facilitating cross-country learning through country presentations and audience participation. Private equity investments in Europe’ health sector have increased exponentially in recent years, including in primary care, but this trend has so far received very little attention. This is surprising, as this development has the potential to change the healthcare landscape in Europe dramatically. The short investment and resale horizon of private equity funds and the emergence of practice chains and monopolistic structures are of particular concern. Ultimately, the growing private equity involvement in Europe's primary care sector could undermine equitable access to health care, reduce physicians’ autonomy, affect local or regional cooperation, erode data protection and raise health care costs. However, private equity investments may also be associated with benefits, such as providing needed capital or enabling employment for young physicians who want to work part-time or do not want to run a practice as entrepreneur. So far, there is little transparent information on ownership structures and very little research on the impact of private equity investments on outcomes, such as equity, access and quality of care. This workshop aims to provide a snapshot of trends in Europe and to inform current debates on how regulators should best respond. It provides an overview of the situation in four European countries (Germany, the Netherlands, Ireland and Sweden) and of policy responses so far. The workshop will provide opportunity for the audience to comment on and discuss the country presentations, share experience in their own countries, and consider policy options in Europe to improve transparency on ownership structures and ensure the interests of patients, the public, and health workers are protected. The workshop will be of interest to researchers, practitioners and policy-makers working on primary care in Europe. Key messages • The workshop provides a forum for discussing the growing role of private equity investment in Europe's primary care sector. • It explores regulatory options to safeguard the interests of patients, health workers and the public.

Costs of Implementing Teen Dating Violence and Youth Violence Prevention Strategies: Evidence From 5 CDC-Funded Local Health Departments.

In 2016, the Centers for Disease Control and Prevention supported 5 local health departments (LHDs) to implement teen dating violence and youth violence primary prevention strategies across multiple levels of the social-ecological model and build capacity for the expansion of such prevention efforts at the local level. The objective of this study was to estimate the total cost of implementing primary prevention strategies for all LHDs across 3 years of program implementation. We used a microcosting analytic approach to identify resources and compute costs for all prevention strategies implemented by LHDs. We computed the total program cost, total and average cost per strategy by social-ecological model level, and average cost of implementation per participant served by the program. All costs were inflated via the monthly Consumer Price Index and reported in August 2020 dollars. For 3 years of program implementation, the total estimated cost of implementing teen dating violence and youth violence primary prevention strategies was >$7.1 million across all 5 LHDs. The largest shares of program-related costs were program staff (55.9%-57.0%) and contracts (22.4%-25.5%). Among prevention strategies, the largest share of total costs was for strategies implemented at the community level of the social-ecological model (42.8%). The findings from this analysis provide a first look at the total costs of implementing comprehensive teen dating violence and youth violence primary prevention strategies and serve as a foundation for investments in local violence prevention funding for young people.

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.