Mutual Fund Investors Research Articles

Behavioral factors Influence on choice of Mutual Fund in Uzbekistan: A Proposed Model using Prospect Theory

This article proposed a model to investigate the behavioral factors influencing the choice of funds in mutual fund investment by using Prospect Theory. It used new independent variables to inoculate new findings to help the understanding of the influence of human behavior in decision making.

Intelligent Designed Assistance Model to Evaluate the Role of Social Media Marketing in Promoting Investment in Mutual Funds in India

This research article explores the impact of social media marketing on promoting investment in mutual funds in India. With the increasing penetration of the internet and the rise of social media platforms, financial institutions are leveraging these channels to engage potential investors. The study investigates the effectiveness of social media marketing strategies in influencing investor behavior, awareness, and decision-making regarding mutual funds. A mixed-method approach was employed, including surveys and interviews with industry experts and investors. This paper explores the application of the Intelligent Designer Assistance System (IDAS) in mutual fund analysis, offering a comprehensive framework for evaluating mutual funds based on key financial metrics. IDAS integrates multiple parameters such as risk levels, return on investment (ROI), cost efficiency, volatility, Sharpe ratio, beta, fund size, and manager tenure, among others, to provide insights that assist investors in making informed decisions. Through the analysis of various fund types, including equity, bond, balanced, and sector funds, this study demonstrates how IDAS can tailor investment recommendations according to individual risk preferences and financial goals. The findings emphasize the importance of aligning investment strategies with factors like fund performance consistency, adaptability to market conditions, and overall cost-effectiveness. This approach enables investors to optimize their portfolios by selecting funds that best match their risk tolerance, return expectations, and sector interests, leading to more strategic and efficient investment choices. This paper investigates the role of social media marketing in promoting investments in New Fund Offers (NFOs) within the Indian mutual fund landscape. As financial institutions increasingly leverage social media platforms for marketing, understanding their effectiveness in influencing investor behavior becomes crucial. This study employs a mixed-method approach, including quantitative surveys and qualitative interviews, to analyze how social media impacts awareness, engagement, and investment decisions related to NFOs.

The Timing of Mutual Funds in India's Market and Their Selectivity

This study looks at the performance of Indian equity mutual funds from 2019 to 2024, focusing on timing, diversity, and selectivity as key variables. The funds' performance over this time was used to select ten. The evaluation made use of the following models: Henriksson and Merton, Fama, Treynor, and Treynor-Mazuy. According to the results, mutual funds usually follow their benchmarks rather closely since they offer relatively low-risk investments. Some funds outperform the market, though, so clearly there's talent in the management team. Mutual fund investors who want to get the most out of their money can use these findings to their advantage.

Decoding Investor’s behavior in tax saving mutual fund: A multi-item scale for evaluating investors’ category

This study aims to design and validate a multi-item scale for assessing the investment behavior of investors in tax-saving mutual funds, with a particular focus on Equity Linked Savings Schemes (ELSS). Additionally, the research seeks to identify clusters of investors with similar personality traits, offering deeper insights into how these traits influence investment decisions. By examining the interplay between capital, personality characteristics, and investment behavior, the study underscores their critical role in fostering economic growth. Despite the growth in mutual fund assets under management (AUM) in India, there is a discrepancy in the inflow to Equity Linked Savings Schemes (ELSS), indicating that investor behavior is influenced by a combination of financial and behavioral factors. Through an extensive review of the literature, the study identifies key gaps in existing research on investor psychology, particularly in relation to ELSS investments, emphasizing the need for a more nuanced understanding of the psychological factors shaping investor decision-making in this area. Using a structured questionnaire, the study gathered data from 489 mutual fund investors to explore the financial and behavioral factors influencing their investment decisions. Factor analysis was employed to identify key factors affecting these decisions, and reliability tests like KMO and Bartlett’s were applied to ensure the adequacy of the sample. The findings reveal two main factors related to financial considerations—Informative cum Magnetize Factors and Inadmissible and Undesirable Benefits—as well as behavioral factors such as overconfidence, anchoring, and herding that significantly impact investor behavior. The study concludes that a deeper understanding of these factors can help categorize and address investor needs, ultimately enhancing participation in tax-saving mutual funds. It also helps regulators in policy-making as per the clusters of Investors.

Post Covid-19 Growth of Midcap Mutual Funds in India: A Study on Top Ten Midcap Mutual Funds

Since the COVID-19 outbreak, asset management companies (AMCs) have taken the lead in increasing wealth through mutual funds. There are two types of mutual funds: open-ended and closed-ended. With 43 AMCs operating in India and an average asset under management (AUM) of ₹27.12 trillion as of July 31, 2020, equity funds are riskier. According to research, small and midcap funds have more risk and higher returns than large-cap funds, which have lower risk and lower returns. For regular investments in mutual funds, especially midcap funds, Systematic Investment Plans (SIPs) have gained popularity. Based on their assets under management (AUM) and monthly SIP inflows from 2020–21 to 2024–25, the top ten midcap funds were examined in this study. The purpose of this study is to show how the performance of the midcap funds and volatility associated with the funds. This study also analyses the volatility of the midcap funds by using Sharpe index, Treynor index, and Jensen's Alpha index. The result shows that few of the midcap funds are more volatile than the other funds but higher volatility generates higher returns for the investors over this last four years.

Understanding sustainable investments: an empirical study of best-in-class mutual funds

PurposeThis research aims to examine mutual funds investment behavior to further understand the dynamics of sustainable investments in the global marketplace and their evolution. Sustainable investing is increasing in the market due to (1) its performance, (2) the investors' criteria and (3) the companies' interest in contributing to sustainable development.Design/methodology/approachTo explore this area, we evaluated Morningstar's best-in-class funds, that is, five-star rated in profitability and five globes in sustainability, while adding rankings such as Sustainalytics to further test the performance against ESG criteria. To test the hypotheses, we used regression statistics to find correlations between quantitative and qualitative factors such as diversification of the investments per sector and region or fund category.FindingsThe results show that funds invested in different sectors, such as technology and healthcare, contributed to an increase in the overall profitability of the fund, while investments in other industries were less profitable. The contribution of this study is based on empirical data that shows why and how ESG investments are growing based on their market evolution.Originality/valueThis study aims to advance knowledge of SRI investment, profitability and market growth, particularly by showing sustainable investment dynamics per industry (e.g. Technology) and regions (e.g. Europe) which not only favor future investments but also sustainable economic growth.

Impact of Human Psychology on Investment Decision-Making: A Study of Mutual Fund Investors

Purpose: The purpose of this study is to investigate the impact of cognitive factors such as Herd, Representativeness, Availability, Mental Accounting, Conservatism, Familiarity, Anchoring, and Overconfidence biases on mutual fund investment decision making. Methodology: The study used quantitative methods to evaluate behavioral factors effect on mutual fund investments. 592 questionnaires were distributed to retail investors in Karnataka using the snowball sampling technique. Of these, 543 responses were received, and 520 were valid, achieving an 87% response rate. Findings: The result of the study revealed that cognitive factors such as herd behavior, representativeness, availability, mental accounting, conservatism, familiarity, anchoring, and overconfidence biases have a significant impact on the investment decision-making of mutual fund investors. The R-squared value of 0.616 indicates that 61.67% of the variation in investment decision-making can be explained by these cognitive factors.

Portfolio climate risk and fund flow performance

Do investors perceive climate risk at the portfolio level in mutual funds? By combining detailed fund portfolio data with firm management discussion and analysis (MD&A) and annual reports, we construct a portfolio-level climate risk metric for funds and assess its impact on fund flows. Our findings reveal that investors, driven by precautionary concerns, tend to withdraw from funds with higher portfolio climate risk, resulting in net outflows. We further identify the moderating effects of strategic behavior in mutual fund families, mutual fund fees, investor attention, and investment concentration.

Analysis of interest in using investment application platforms as a means of mutual fund investment among Gen Z and Gen Millennials

This research aims to determine the factors that shape Gen Z and Gen Millennials' interest in using platform investing in mutual fund applications. The factors tested as explanatory variables are Perceived Risk, Perceived Ease of Use, Perceived Usefulness, attitude towards Platform, Financial Literacy, Trust, and Technology Literacy. This research was conducted against the background of the low proportion of Gen Z and Gen Millennials who are investors in mutual funds, although in aggregate the number of investors in mutual funds tends to increase. This research was conducted on the Gen Z and Gen Millennial population registered with the Semi-Autonomous Body for the Capital Market Study Group, Faculty of Economics and Business, Udayana University, totaling 1,455 people. There were 306 respondents taken to represent the population through Purposive Sampling techniques. The results of analysis using SEM-PLS show that Perceived usefulness Impact on and Attitudes Towards Use. Perceived ease of use impacts Attitudes Toward Use and Gen Interest. Z. and Millennial Gen. Attitude Toward Usage impacts Gen Interest. Z. and Millennial Gen. Trust and Risk Perception Impact Attitudes Toward Use. Risk Perception has an impact on Attitudes Perceived Ease of Use. These results can provide implications for further discussion and development by further researchers, KSPM, and mutual fund application developers.

A novel sigma-Mu multiple criteria decision aiding approach for mutual funds portfolio selection

A Sigma-Mu approach is proposed for mutual funds portfolio selection. The mean and variance of the overall performance of each asset are considered, according to an additive aggregation model, subject to weights’ preferences provided by the decision maker. These preferences concern two independent sets of weights, i.e., those pertaining to the investment indicators and those pertaining to the time periods associated with the estimation of the indicators. For the first time in the Sigma-Mu framework, a weighting matrix is exploited, assisting on the development of a method to appraise the sources of variance, due to the weighting scheme of either the indicators or the periods. The Mu's, Sigma's and covariances estimated according to the Sigma-Mu approach, enter as inputs to mixed-integer quadratic programming (MIQP) mean-variance portfolio optimization models, in order to implement an empirical testing procedure, for a period of 8 years. The underlying MIQP models are equipped to consider non-convex investment policy constraints, such as the number of securities to be included in the portfolio, specific binary buy-in thresholds, the desired exposure of the portfolio to each investment advisor etc. The dataset that has been chosen for the empirical testing includes European mutual funds, that offer a broad exposure to the whole span of investment strategies and styles. The results document that the suggested approach may effectively be utilized in mutual funds investment management, since the portfolios constructed by the suggested methodology are associated with superior absolute and risk-adjusted performance against benchmarks.

Proof Of Criminal Origin Related To Money Laundering In Mutual Fund Investment Activities In Supreme Court Decision Number 2937 K/Pid.Sus/2021

The crime of money laundering in the form of mutual fund investments is a serious crime that can threaten the stability of the financial system and economy. Perpetrators use mutual funds as a means to disguise the origin of illegal funds resulting from criminal acts, such as corruption, which are then invested as if they were legitimate funds. This not only harms the country financially, but can also reduce investor confidence in the mutual fund industry. Therefore, it is important to examine the criminal liability of perpetrators of money laundering in mutual fund investments in order to maintain the integrity of the financial system and provide a deterrent effect for perpetrators of similar crimes. This research is aimed at analyzing the legal regulation of criminal acts of money laundering in mutual fund investment activities in Indonesia, proof of predicate crimes related to criminal acts of money laundering in mutual fund investment activities in Supreme Court Decision Number 2937 K/Pid.Sus/2021, as well as criminal responsibility for perpetrators of these crimes. money laundering crime in mutual fund investment activities in Supreme Court Decision Number 2937 K/Pid.Sus/2021.The research method used is normative juridical research, which is supported by primary and secondary data sources. All legal materials were collected using library research techniques using document study data collection tools. Apart from that, field studies were also carried out using interview methods and analyzed qualitatively.The results of the research and discussion concluded that the legal regulations related to the crime of money laundering in mutual fund investment activities in Indonesia are as regulated in Law Number 8 of 2010. Based on Supreme Court Decision Number 2937 K/Pid.Sus/2021, it can be concluded that the defendant Benny Tjokrosaputro proven to have committed a criminal act of corruption together with other parties in managing investments at PT Asuransi Jiwasraya (Persero) which caused state losses amounting to IDR 16.807 trillion, as well as a money laundering crime of IDR 6.078 trillion, so he was sentenced to life imprisonment and payment of compensation to the state, based on valid evidence at trial and the fulfillment of the elements of the criminal act in accordance with the articles charged.

Exploring the Impact of Employee Motivation on Investment Decisions: - A Study of Factors Influencing Mutual Fund Investment Among Corporate Employee

This study explores the impact of employee motivation on investment decisions, specifically focusing on the factors influencing mutual fund investments among corporate employees. As financial literacy and investment participation grow, understanding the underlying motivations that drive investment choices is crucial for both individuals and financial institutions. Utilizing a mixed-methods approach, we conducted surveys and in-depth interviews with corporate employees across various sectors. The findings reveal that intrinsic motivations, such as personal financial goals and career advancement, significantly influence mutual fund investment decisions. Additionally, extrinsic factors, including company-sponsored financial education programs and peer influence, play a critical role in shaping employees' investment behaviors. Our analysis indicates that motivated employees are more likely to engage in proactive financial planning and make informed investment choices. We also identified barriers such as risk aversion and lack of confidence in investment knowledge that hinder mutual fund participation. The implications of this study suggest that organizations should enhance employee motivation through targeted financial education initiatives and create a supportive investment culture. By doing so, companies can not only improve employee financial well-being but also foster a more engaged and motivated workforce. This research contributes to the existing literature on employee motivation and investment behavior, offering insights for corporate stakeholders and financial advisors aiming to enhance mutual fund investment strategies among employees.

The Effects of Past Behavioral Bias on Mutual Fund Investors Intention: Examining the Moderating Impact of Knowledge

This study aims to understand individual behavioral intentions toward mutual fund investors using the theory of planned behavior (TPB). Financial knowledge is used as a moderating variable to test the relationship between the antecedents of investment intention. Convenience sampling was used to obtain 236 samples. Statistical analyses were performed using the SPSS and AMOS software. The research discovered that subjective norms and perceived behavioral control had a substantial impact on individuals’ intention to invest. Financial knowledge is positively moderated by the antecedents of investment intentions. This study suggests that following the initial phases of decision-making, investors seek information from a variety of sources, including feedback from family and friends, podcasts, social media, and prior experiences. Marketers and financial advisors should educate investors of all ages and education groups on where and how to select and build portfolios of mutual funds in financial markets.

Optimizing estate planning through strategic mutual fund investments: Analysis on evaluating mutual fund performance models for long term investment objectives

Optimizing estate planning through strategic mutual fund investments: Analysis on evaluating mutual fund performance models for long term investment objectives

A Study on Perception of Mutual Fund Investment

This study explores the performance, risks, and opportunities associated with mutual fund investments, particularly in the Indian market. It evaluates different mutual fund types, analyzing their historical returns and risk metrics to provide investors with data-driven insights. The research examines the factors influencing mutual fund performance, including market volatility, asset management strategies, and economic conditions. Additionally, the study assesses investor behaviour in response to mutual fund performance, emphasizing the role of financial literacy and risk tolerance. The findings suggest that mutual funds offer a viable investment option for wealth creation, with equity-based funds outperforming others over a long-term horizon. However, market risks remain significant, requiring careful management and strategic investment planning

Green fund investors and ESG performance: Evidence from China

Using the ESG scores from the Bloomberg Database and the manually filtered green fund investor data, we study the influence of green fund investors on the Chinese A-shares' ESG performance. As we have found, the holding of fund investors who pay attention to sustainable development can improve the firm's ESG performance, and this improvement is more pronounced in state-owned enterprises, heavily polluting industries, and after the green policy announcement. Our findings are robust after considering the reverse causality endogeneity concern and sample selection bias. In addition, the holdings of green fund investors favor the company's status as a green index constituent and its long-term financial performance. Further, the mechanism test reveals the influencing channel of this improvement and supports that it is long-term green fund investors themselves improving the firms' ESG performance and can improve a firm's ESG performance by attracting other long-term investors and new mutual fund investors, and increasing the level of media scrutiny pressure. Our paper contributes to figuring out the impact of institutional holding on ESG development and further points out the source of this influence.

Climate policy regime change and mutual fund flows: Insights from the 2020 US election

President Biden campaigned and was elected on a bold “clean energy revolution,” a pledge that drastically reshaped expectations surrounding US climate policy. We study how mutual fund investors respond to this significant shift in environmental priorities. We find that low-carbon funds attract (or retain) $15 billion more investments than high-carbon funds during the three months after the 2020 election compared with the three months before. We also find that low-carbon funds underperform high-carbon funds by between 0.47 % and 0.89 % a month during the same period. These results indicate that Biden's election heightens climate transition risk awareness, prompting investors to hedge this risk by investing more in low-carbon funds and receiving lower returns. The flow effect is more pronounced among retail investors, emphasizing their increased recognition of climate transition risk. We also uncover an interesting clientele effect: investors in low-carbon funds consider continuous carbon risk measures, whereas investors in high-carbon funds do not. Furthermore, our analysis of a US-only fund sample reveals that sensitivity to climate risk is insignificant in 2018 after Morningstar first published low-carbon metrics (unlike Ceccarelli, Ramelli, & Wagner, 2024) but becomes particularly significant following the 2020 election.

Taking matters into their own hands: How Investors' stock preferences affect mutual fund flows in China

We examine the impact of investors' stock preferences in mutual funds' portfolios on fund flows in China. Our results indicate that mutual funds with an investment style consistent with individual investors' stock preferences have higher fund flow. We find that it affects only individual investors' fund flow, not institutional investors' fund flow. This impact is greater during periods of low economic policy uncertainty or high investor sentiment. Moreover, this impact is reduced with larger fund size or longer fund age. The reasonable explanation is that investors infer fund managers' skills by analyzing the stocks in the fund's portfolio. This explanation is further validated by the results using index funds as the control group. Our findings challenge the assumption that mutual fund investors fully delegate decisions to professionals. Further analysis reveals there is no significant correlation between these preferences and future returns. Our findings contribute to the study of mutual fund investor behavior from a fresh perspective.

Understanding Mutual Funds Performance with mediation of Human Capital and GDP-Growth in Pakistan Mutual Funds: Demonstration of Structural Equation Model

This work sheds light on the complex interplay between mutual fund performance, using human capital, and GDP growth as mediating variables in Pakistan through the lens of Structural Equation Modeling. By employing this sophisticated analytical approach, the findings uncovered nuanced nexus that traditional methods might have overlooked. The findings underscore the critical role of GDP-Growth and human capital as a mediating factor, suggesting that investments in mutual funds could have far-reaching effects on the financial performance on individual investors. Moreover, the demonstrated link between GDP-growth and mutual fund outcomes highlights the intricate web of economic factors influencing investment landscapes. Our findings thus reveal that the impact of the market factor and GDP growth on portfolio returns shows statistically significant estimates both mediation models. However, size-factor shows two portfolios significant while two portfolios insignificant results using both mediating variables. However, the value factor shows highly significant in both mediating models but reveal insignificant nexus with HC-Growth as mediating variable using only FF3FM. Moreover, momentum factor shows insignificant results for both mediating models. As Pakistan continues to develop its mutual fund market, policymakers and fund managers alike would do well to consider these interconnections in their decision-making processes.

Analysis The Effect Of Volatility On Potential Losses Mutual Fund Investments Using The ES-GARCH Method

Investing in mutual funds has become a popular choice for investor who looking to participate in the capital markets with more diversified risk. However, the success of mutual fund investments depends on investors understanding the potential losses and opportunities that may arise during the investment period. Analyzing the risk of mutual fund investments is fundamental in helping investors comprehend potential losses. Therefore, research is conducted to understand potential losses by estimating asset price volatility and determining the maximum possible losses. The Expected Shortfall (ES) method proves useful in measuring downside risk and extreme loss potential in investments, but it is less effective in addressing nonlinear trends and the complexity of volatility patterns. Hence, a combination of the Expected Shortfall (ES) and Generalized Autoregressive Conditional Heteroskedasticity (GARCH) methods is employed to measure the risk of mutual fund investments. The research findings indicate that volatility has a positive impact on Value at Risk (VaR), and the potential maximum losses (ES) increase with higher volatility, indicating a greater risk.