Does Fund Size Affect the Performance of Equity Mutual Funds? An Empirical Study in the Indian Context

2009 ◽  
Author(s):  
D. N. Rao ◽  
S. B. Rao
Keyword(s):  
Empirical Study ◽  
Mutual Funds ◽  
Indian Context ◽  
Equity Mutual Funds ◽  
Fund Size

Liquidity, Investment Style, and the Relation between Fund Size and Fund Performance

2008 ◽  
Vol 43 (3) ◽  
pp. 741-767 ◽  
Author(s):  
Xuemin (Sterling) Yan
Keyword(s):  
Mutual Funds ◽  
Fund Performance ◽  
Inverse Relation ◽  
High Turnover ◽  
Investment Style ◽  
Equity Mutual Funds ◽  
Fund Size

AbstractUsing stock transactions data along with detailed stockholdings for a comprehensive sample of U.S. actively managed equity mutual funds from 1993 to 2002, this paper empirically examines the effect of liquidity and investment style on the relation between fund size and fund performance. Consistent with Chen, Hong, Huang, and Kubik (2004), I find a significant inverse relation between fund size and fund performance. Further, this inverse relation is stronger among funds that hold less liquid portfolios. The inverse relation between fund size and fund performance is also more pronounced among growth and high turnover funds that tend to have high demands for immediacy. Overall, this paper's findings suggest that liquidity is an important reason why fund size erodes performance.

scholarly journals KARAKTERISTIK REKSA DANA DAN KINERJA REKSA DANA SAHAM DI INDONESIA

2017 ◽  
Vol 22 (1) ◽  
Author(s):  
Christiana Fara Dharmastuti ◽  
Bernadus Dwiprakasa
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Fixed Effect Model ◽  
Positive Influence ◽  
Expense Ratio ◽  
Equity Mutual Funds ◽  
Effect Model ◽  
Investment Models ◽  
Fund Size ◽  
Interesting Alternative

A mutual fund is one of the interesting alternative modes of investment models for the investors that do not have much time, knowledge and expertise in calculating the risk and investment return. This study is aimed to understand the influence of the mutual fund’s characteristics: the expense ratio, fund size, turnover ratio, and the mutual fund’s age towards the mutual fund’s performance in Indonesia. This study has been conducted using the Fixed Effect Model with the White cross-section as the coefficient covariance method at 34 active equity mutual funds that existed in Indonesia during the 2012-2013 period. The result of this study has indicated that the expense ratio and the multi fund’s age have a significant negative towards the the equities mutual funds in Indonesia while the fund size and the turnover ratios have a significant positive influence towards the the equity’s mutual fund’s performance in Indonesia.

scholarly journals Regime-Switching Determinants of Mutual Fund Performance in South Africa

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 161
Author(s):  
Richard Apau ◽  
Peter Moores-Pitt ◽  
Paul-Francois Muzindutsi
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Regime Switching ◽  
Fund Performance ◽  
Market Conditions ◽  
Fund Managers ◽  
Fund Flow ◽  
Equity Mutual Funds ◽  
Systemic Factors ◽  
Fund Size

This study assesses the effect of fund-level and systemic factors on the performance of mutual funds in the context of changing market conditions. A Markov regime-switching model is used to analyze the performance of 33 South African equity mutual funds from 2006 to 2019. From the results, fund flow and fund size exert more predictive influences on performance in the bearish state of the market than in the bullish state. Fund age, fund risk, and market risk were found to be the most significant factors driving the performance of active portfolios under time-varying conditions of the market. These variables exert more influence on fund performance under bearish conditions than under bullish conditions, emphasizing the flight-to-liquidity assets phenomenon and risk-aversion behavior of fund contributors during unstable conditions of the market. Consequently, fund managers need to maintain adequate asset bases while implementing policies that minimize dispersions in fund returns to engender persistence in performance. This study provides novel perspectives on how the determinants of fund performance change with market conditions as portrayed by the adaptive market hypothesis (AMH).

A study on performance evaluation of equity mutual funds schemes in India

2020 ◽  
Vol 07 (02) ◽  
pp. 2050017
Author(s):  
Ruchi Arora ◽  
T. V. Raman
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Secondary Data ◽  
Information Ratio ◽  
Portfolio Evaluation ◽  
The Past ◽  
Equity Mutual Funds ◽  
Secondary Data Sources ◽  
Fund Investment ◽  
Fund Size

Mutual Funds give a platform for everyone to participate within the Indian capital market with skilled fund management no matter the number endowed. In the past few years, among the various financial products in India, Mutual Funds have emerged as the favorite. There is no doubt that acceptance of mutual funds as an investment vehicle has certainly increased among investors as many investors are earning from mutual fund — as result of increase in information and awareness among investors. Smaller amount of risk is associated with mutual fund investment than directly investing in stocks. Fund manager needs to provide returns in order to construct a diversified portfolio. They take into account numerous factors like, fund size, scheme type, returns, risk, etc. The paper attempts to analyze portfolio evaluation of selected equity diversified schemes using volatility measures such as quantitative factors like Standard Deviation, Beta and the ratios such as Sharpe, Treynor, Jensen’s Alpha, Information ratio, Fama’s Measure, Expense ratio measures. Data for research are collected from the secondary data sources and selected from 30 Mutual Fund schemes 10 AMCs.

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