Mutual Funds Research Articles

METODE MEAN-SEMIVARIANCE DALAM PEMBENTUKAN PORTOFOLIO REKSA DANA SAHAM TERBAIK BAROMETER BAREKSA

The most popular investment product today is mutual funds. One of the factors in selecting mutual funds is the low investment risk. This risk can be minimized again by combining several assets and then compiling them into a portfolio. The portfolio formation method used in this study is the Mean-Semivariance method and the Sharpe Index to calculate portfolio performance. The data used is the daily net asset value per unit of Mandiri Investa Atraktif Syariah, Rencana Cerdas, Manulife Saham SMC Plus and BNP Paribas Solaris for the period January 3 2022 to March 9 2023, Jakarta Composite Index (IHSG) data as a benchmark and BI-7 Day Reverse Repo Rate as a riskfree interest rate. The minimum risk of the portfolio will be achieved by compiling a portfolio of two mutual funds, namely Mandiri Investa Atraktif Syariah with a weight of 92,50% and the Smart Plan with a weight of 7,50% with an expected return rate of 0,00019 and a risk of 0,000000663. The Sharpe Index is 0.08971 indicating that the portfolio formed has good performance and can be used as a choice of investment assets by investors.

Understanding the Indian Government’s Intentions Toward CeFi, DeFi, Cryptocurrencies, Share Market, Mutual Funds, Gold, and Fixed Deposits

This paper explores the Indian government’s stance and evolving regulatory landscape regarding various financial instruments, such as centralized finance (CeFi), decentralized finance (DeFi), cryptocurrencies, share market, mutual funds, gold, and fixed deposits. It examines the current frameworks and regulations, and how government policies are shaping each financial avenue. By analyzing the different approaches toward traditional and modern financial systems, this paper highlights the challenges and opportunities faced by the Indian financial ecosystem, particularly in the context of cryptocurrencies and DeFi.

How Do Socially Responsible Investment Funds Go Green? The Influence of Investment Styles and managers' Experience

ABSTRACTWe provide an holdings‐based analysis of socially responsible investment (SRI hereafter) funds' greenness and its determinants in Europe over 8 years (2015–22). To this end, a segmentation of SRI funds by greenness degree based on k‐means clustering is developed. Our results reveal that SRI funds' greenness depends on specific investment styles and the salient experience of managers in SRI. We verify that greening an SRI fund implies a higher stock selectivity leading managers to underweight their portfolios with fossil fuel stocks and raise the weight of green stocks once SRI market regulations in Europe have been implemented. Also, we find that active investment styles make SRI funds greener. Moreover, we provide evidence of counteracting experience effects provided that the more (resp. less) the manager is experienced in SRI (resp. mutual fund industry), the greener the fund is. In addition to those experience effects, we detect a gender diversity effect provided that a greater gender diversity in fund management teams contributes to increase SRI funds' greenness. Overall, our findings support the argument that the experience and abilities of fund managers are important factors for investors to consider when they choose SRI funds notably because skilled professionals with more experience in SRI are more likely to adapt to regulatory shifts.

The Benefits of China Funds During Globalization and in a New World Order

Examining data from their inception in the 1990s to 2022, we find that both China mutual funds and China exchange-traded funds (ETFs) outperformed their benchmarks, the S&P 500 index fund and SPY, before the global financial crisis starting in the summer of 2007 but underperformed afterward. We show that the real benefits of China funds in the post-crisis period since May 2009 lie in their hedge effect against U.S. stock market downturns. Current policies in both countries indicate the emergence of a new world order of selective segregation in some sensitive sectors but a continuous trading partnership because each country needs the other. For example, China needs computer chips from the United States, whereas the United States needs key chip-making minerals from China. Paradoxically, this new world order creates growth opportunities in both countries, which is conducive to investing in China funds and makes it necessary for China funds to invest directly in Chinese shares to better serve the U.S. investors.

Legal Risk Mitigation in Mutual Fund Sales Through E-Commerce Platforms

Legal Risk Mitigation in Mutual Fund Sales Through E-Commerce Platforms

Impact of bank-affiliation on liquidity seeking of foreign mutual funds during adverse shocks: Evidence from China

Using daily shareholding data and event-based measures of composite shocks, we investigate the liquidity-seeking behavior of foreign mutual funds in China that are affiliated with commercial banks, comparing it with the behavior of unaffiliated foreign mutual funds. Fixed effect and panel structural VAR models both reveal differential responses between affiliated and unaffiliated foreign mutual funds. While both types of mutual funds seek liquidity by withdrawing from illiquid, volatile and growth-oriented stocks facing negative shocks, unaffiliated mutual funds exhibit a higher degree of liquidity seeking, consistent with the results of bank-affiliated funds providing liquidity stability. This finding is robust to the selection of shock periods and measurements. The evidence shed new lights on the liquidity management of open-end foreign mutual funds in emerging markets.

Performance of Closed-Ended Mutual Funds: A Test of Market Efficiency

Background: Mutual funds, known for aggregating funds from a diverse investor base, play a crucial role in managing small funds smartly. This study evaluates the performance of selected closed-ended mutual funds and examines market efficiency in Nepal. Methods: Using a descriptive and casual-comparative research design, the study spans forty-eight months from January 15, 2018, to January 14, 2022. Monthly data from five mutual funds are analyzed, with metrics such as the Treynor ratio, Sharpe ratio, and Jensen alpha. The study variables include market returns, assets, expense ratios, fund age, liquidity, and mutual fund returns. Various statistical tests, including correlation analysis, Integrated Ranking Analysis, ANOVA test, t-test, and P-value tests, are conducted to determine the significance and statistical relevance of the study variables. Results: The findings reveal that mutual fund performance is influenced by factors such as return, age, liquidity, asset, and expense ratio. Expense ratio and age emerge as the most impactful factors, demonstrating a statistically significant relationship with market return (p < 0.05). All selected mutual funds outperform the market return (NEPSE), with Sanima Equity Fund securing the top rank in all three measures. Conclusion: The Sharpe ratio, Treynor ratio, and Jensen alpha measures for mutual funds surpass those of the market, indicating market inefficiency in its semi-strong form. Novelty: This study uniquely evaluates closed-ended mutual funds using comprehensive performance metrics, demonstrating their significant outperformance compared to market benchmarks. It underscores their effectiveness in actively managing passive funds and challenges the efficient market hypothesis.

Perception of Women Towards Investment in Different Investment Alternatives

Women are empowered to take active participation in investment activities through financial education and an inclusive investment environment. Several alternatives to investing are available, including mutual funds, real estate, precious metals, savings accounts, and stocks, which offer potential returns through regular income or capital appreciation. Investment alternatives are differentiated by their unique features, risks, returns, and ease of management. Investors, before investing, must take these features into account in relation to their risk tolerance, goals, and time horizon when considering any particular alternative. As women are recognized for making risk-averse investment decisions, their investments are impacted by numerous factors. The primary goal of this study is to understand the investment perception of women towards different investment alternatives. While the main factors influencing investment decisions are return, risk, and liquidity, several other factors specifically influence women investors, such as social and cultural norms, peers, and family members. Primary data was collected through a well-structured questionnaire consisting of Likert scale questions. SPSS software was used for data analysis. The initial results of the survey showed that 70% of the respondents had an average understanding of different investment options, whereas only 5% had high knowledge of different investment alternatives. When it comes to interest in a particular investment, mutual funds are the most preferred alternative. Additionally, 72% of women respondents show a moderate level of risk tolerance among all respondents in the study.

Global Green Finance: Roadmap for India

Climate change, and especially, ‘climate deterioration’ is an alarming situation for the global scenario, and thus, the need for developing financial services and products that aim to reduce the effects of these changes is the need of the hour. This long-felt need has given birth to a new form of investing, known as green finance or broadly, sustainable finance. So, it can be said that green finance is a subset under the larger umbrella of the concept of sustainable finance. This article tries to bring to the knowledge of the readers the basic understanding of the concept of green finance, its various instruments available globally and its developments at the global and Indian level, highlighting the three stages of green finance’s evolution and its major theories. Further, it reveals the global presence of major green finance instruments like green bonds and its types, green mutual funds (MFs) and green stock exchanges. The article also deals with the concepts of emissions trading system and European Union’s Carbon Border Tax. The discussion becomes more specific in the subsequent sections, drawing the present picture of green finance concerning the Indian scenario—its green bank, green bonds, green MF and green stock exchange. Reserve Bank of India’s recent guidelines regarding green finance and India’s presidency at the last held G20 summit are also discussed, finally concluding with mapping the road ahead for India.

The Impact of Inflation, Stocks, Sukuk, and Sharia Mutual Funds on Economic Growth in 2017-2023

This study aims to ascertain, at least in part: 1) The impact of inflation on the development of the national economy 2) The performance of sharia stocks and the expansion of the national economy 3) The impact of sukuk on the development of the national economy, as well as the impact of sharia mutual funds on the same, which are the third and fourth impacts 5) Correlation between the development of the national economy in 2017-2023 through inflation, sharia mutual funds, sukuk, and stocks. Bank Indonesia (BI), the Financial Services Authority (OJK), the Central Statistics Agency (BPS), and other reliable sources of information provided the population used in the study. To sort the sample based on criteria set as independent variables, the monthly data source is used once a year. Data sources include time series data published for 2017-2023, which is considered secondary data. The analysis of the data is double linear, this research strategy uses a quantitative-associative methodology. It can be concluded that inflation has a significant adverse impact on the development of the national economy (sig. 0.0001 < 0.05), indicating that increasing inflation causes economic decline, in line with Simanungkalit's (2020) research. Sharia stocks and sukuk show a positive and significant impact on the national economy, with a value of sig. 0.0021 and 0.0019 (< 0.05), respectively, which means that an increase in the instrument will increase economic growth, according to research by Radjak & Kartika (2020) and Ardi (2018).

ESG ratings and investment performance: evidence from tech-heavy mutual funds

ESG ratings and investment performance: evidence from tech-heavy mutual funds

Correction: How do retail investors respond to summary disclosure? Evidence from mutual fund factsheets

Correction: How do retail investors respond to summary disclosure? Evidence from mutual fund factsheets

Accounting for impairment, estimated liabilities and valuation of growing and fattening animals

In the context of digitalization of the agricultural economy, issues of automation of accounting of animals for growing and fattening in the digital accounting of agricultural organizations are becoming relevant. In addition, these organizations must keep records of animals for growing and fattening according to the requirements of new regulatory documents. In this regard, the article defines the tasks of accounting for animals for growing and fattening, provides the procedure for assessing the offspring and gain of animals, as well as animals acquired from outside by purchase, gratuitous receipt, receipt on account of a contribution to a mutual fund, received under contracts providing for the fulfillment of obligations (payment) by non-cash funds. The article proposes valuation of animals for growing and fattening at fair value, taking into account their qualitative characteristics. The methodology for accounting for animals for growing and fattening in accounts at fair value is given. Recommendations have been developed for valuation of animals for growing and fattening after their recognition in accounting, as well as accounting for the impairment of animals for growing and fattening and the creation of an estimated liability for them. The digitalization of operations for the movement of animals during rearing and fattening with full automation of their accounting is proposed

Another puzzle: the growth in actively managed mutual funds

Another puzzle: the growth in actively managed mutual funds

Nexus between AMCs and distributors and its impact on investor wealth

This study explores the relationship between AMCs and distributors in India, analyzing the effects of distributor commissions on mutual fund performance and AUM growth of equity funds. While commissions may temporarily boost AUM growth, they often lead to high-expense, underperforming funds, ultimately harming investors. Fund ratings, driven by performance, significantly influence AUM growth, but the negative impact of commissions on ratings can trigger a vicious cycle, hindering long-term growth.

The performance of asset allocation mutual funds

The performance of asset allocation mutual funds

The Memory in Return Volatility: An Analysis of Mutual Fund Returns

ABSTRACTThis paper examines long memory in the return volatility in the cross‐section of U.S. mutual funds. Our results provide evidence of this phenomenon. Through univariate analysis, we find that the long memory in mutual fund return volatility is more pronounced than in stock return volatility. Additionally, the long memory estimate is negatively related to expected fund returns. Holding a long position in shorter‐term memory funds and a short position in longer‐term memory funds generates significant excess returns of 0.26% per month for value‐weighted portfolios.

IMPACT ASSESSMENT OF INFORMATION TECHNOLOGY ON INVESTMENT CHOICE DECISIONS OF ACADEMIC PROFESSIONALS

The substantial impact of information technology on investment decision-making is explored in this study, and strong empirical support is provided through a significant regression model. Understanding the extent to which technology influences investment choices is of utmost relevance in a time of fast technological advancement. The research makes use of a varied dataset that includes a variety of economic and market characteristics, employing robust statistical analysis to evaluate the relationship between technology and investment decisions. Our findings show that information technology and investing choices are statistically significantly correlated. The regression model illustrates how technology is increasingly being used into investment strategies and how it influences investors' decisions. This study emphasizes the importance of incorporating technical expertise into investment plans, with a focus on data analytics, artificial intelligence, and long-term tech investments. Furthermore, the ease with which mutual funds can be invested in, with alternatives for both novice and experienced investors, has made them a practical and accessible option as the study points mutual funds as the most preferred option for investment. Their liquidity and transparency also resonate with investors who appreciate the ability to monitor their investments easily and access their funds when needed. The results of the study highlight how crucial it is to comprehend investor preferences for financial goods. The popularity of mutual funds not only demonstrates their benefits but also emphasizes the necessity for financial institutions and advisors to customise their services and products in order to meet investor needs. KEYWORDS: Information Technology, Investment Choice Decisions, Mutual Funds

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.

Moving the Goalposts? Mutual Fund Benchmark Changes and Relative Performance Manipulation

Abstract We analyze changes to mutual funds’ self-declared benchmarks using hand-collected data from funds’ prospectuses. Under existing rules, funds can freely change their benchmark indexes and, implicitly, the historical returns to which they compare their past performance. Funds exploit this loophole by adding (dropping) indexes with lower (higher) past returns, thereby materially improving the appearance of their benchmarkadjusted returns. High-fee funds, broker-sold funds, and funds experiencing poor performance and outflows are more likely to engage in this behavior. These funds subsequently attract additional flows despite continuing to underperform their peers. (JEL G11, G14, G20, G23, G50, G53)