Factors Affecting Fund Flows in Islamic and Conventional Mutual Funds of Pakistan

Mutual fund is four decades old in India. It was started by UTI during the year 1964 with few schemes for small investors. During this short span of time it has made tremendous growth in Indian small investors. But now a day’s its volume of investors and sources of investment also growing tremendous level. Moreover mutual fund scheme have added new dimension to overcome financial risk of small investors and also in fund raising capacity of corporate sectors. Mutual fund investors can diversify even more by purchasing different kind of stocks which will helps to spreading out investors’ money across different types of derivative instruments and hence it reduces the risk tremendously up to certain extent and it is automatically diversify in a predetermined category of investments. This serves bridge work between small investors and corporate sectors likewise considering those points in this paper is an attempt to know the investors’ perceptions towards selected mutual funds. This paper makes an attempt to identify various factors affecting perception of investors regarding investment in mutual funds. The findings will helpful to identify the investors’ interest base and factors clearly and it reveals that the investors consider mutual funds as flexible investment option and it creates interest of investment among small investors.

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Investor Sentiment and Flows into Treasury Funds

The Journal of Investing ◽

10.3905/joi.2018.27.4.019 ◽

2018 ◽

Keyword(s):

Mutual Funds ◽

Financial Market ◽

Mutual Fund ◽

Explanatory Power ◽

Investor Sentiment ◽

Fund Flows ◽

Inflation Expectations ◽

Relative Response ◽

Financial Market Risk ◽

Blue Chip

The author compares the relative response of Treasury fund flows to the sentiment-prone Michigan Survey of Inflation Expectations and to the Blue Chip Survey of Financial Forecasts, a professional forecast of inflation. The Treasury market is an ideal subject for examining whether or not sentiment affects flows: it is highly liquid, making it unlikely that it is hard to arbitrage, and inflation is the primary factor affecting its returns. Using mutual fund inflows into TIPs and Treasury mutual funds that occurred between January 1991 and June 2011, the author finds that the Michigan Survey is insignificantly related to flows into inflation-indexed TIPs and is positively related to flows into nominal Treasury funds. The Blue Chip Survey does not have incremental explanatory power. The evidence is consistent with a combination of a hedging motive and a flight to liquidity triggered by information in the Michigan Survey about households’ perception of financial market risk. The two motives reinforce each other in driving flows into nominal Treasury funds when the Michigan forecast of inflation is high, while they appear to cancel each other out in determining flows into the illiquid TIPS market.

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Does Sustainability Score Impact Mutual Fund Performance?

Sustainability ◽

10.3390/su11102972 ◽

2019 ◽

Vol 11 (10) ◽

pp. 2972 ◽

Cited By ~ 5

Author(s):

Pablo Durán-Santomil ◽

Luis Otero-González ◽

Renato Heitor Correia-Domingues ◽

Juan Carlos Reboredo

Keyword(s):

Mutual Funds ◽

Mutual Fund ◽

Value At Risk ◽

Fund Performance ◽

Fund Flows ◽

Socially Responsible ◽

Equity Fund ◽

Socially Responsible Investments ◽

Mutual Fund Flows ◽

European Equity

Given that sustainable investing constitutes a major force across global financial markets, in 2016 Morningstar began reporting Morningstar Sustainability scores. We used the 2016, 2017 and 2018 scores to study the effects of socially responsible investments (SRI) on European equity fund performance. Sustainability scores impacted positively on performance, which was consistent with the idea that the mutual funds invested in companies with better scores generate better risk-adjusted and not-risk adjusted performance. We also tested the relation on mutual fund flows and risk. The sustainability score in the previous year is significant on the flows, so higher-rated funds receive a larger volume of funds. In terms of risk, the level of sustainability is negatively related to the value at risk (VaR) of the fund, supporting that higher scored mutual funds offer better protection against extreme losses.

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Chasing returns with high-beta stocks: evidence from tax-privileged mutual funds in Thailand

Economics and Business Letters ◽

10.17811/ebl.10.1.2021.37-44 ◽

2021 ◽

Vol 10 (1) ◽

pp. 37-44

Author(s):

Roongkiat Ratanabanchuen ◽

Kanis Saengchote

Keyword(s):

Mutual Funds ◽

Capital Markets ◽

Public Policies ◽

Systematic Risk ◽

Unintended Consequences ◽

Risk Exposure ◽

Fund Flows ◽

Equity Mutual Funds ◽

Tax Benefits ◽

High Beta

One proposed explanation for the low-beta anomaly – a puzzling finding that stocks with low systematic risk tend to earn higher returns than the CAPM predicts and vice versa – is that mutual funds drive up demand for high-beta stocks, leading to systematic mispricing. We find evidence that Thai equity mutual funds tend to alter their risk exposure in response to fund flows, but only for incentivized funds where investors receive immediate tax benefits. We argue that the benefits change the way investors make their decisions, raising an issue of how public policies may have unintended consequences in capital markets.

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Analysis of Factors Affecting the Performance of Fixed Income Mutual Funds in Indonesia (Study on RDPT Registered on OJK for the Period 2014-2018)

Proceedings of The International Conference on Environmental and Technology of Law, Business and Education on Post Covid 19, ICETLAWBE 2020, 26 September 2020, Bandar Lampung, Indonesia ◽

10.4108/eai.26-9-2020.2302719 ◽

2020 ◽

Author(s):

Ferby Kusumawati ◽

V. Paramita

Keyword(s):

Mutual Funds ◽

Fixed Income ◽

Factors Affecting

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Why do Fund Managers Increase the Lottery-Like Characteristics of the Fund?

Korean Journal of Financial Studies ◽

10.26845/kjfs.2021.12.50.6.557 ◽

2021 ◽

Vol 50 (6) ◽

pp. 557-592

Author(s):

Minyeon Han ◽

Hyoung-goo Kang ◽

Kyoung Hun Bae

Keyword(s):

Mutual Funds ◽

Fund Flows ◽

Fund Managers ◽

And Performance

We investigate why fund managers invest in lottery-like stocks and whether the behavior that holds more lottery-like stocks affects performance. First, mutual funds that hold more lottery stocks may attract more fund flows. Our results support the theory that fund managers invest more in lottery-like stocks to reflect investors' preferences for extreme payoffs. Second, the level of lottery-like characteristics of mutual funds does not predict managers’ skill and performance. Therefore, fund managers holding more lottery stocks is not a result of managers’ skills. Third, lottery-like characteristics of mutual funds do not significantly affect performance in specific reporting periods (e.g., year-end or quarter-end). Based on this result, we conclude that fund managers do not invest more in lottery stocks to advance their career.

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