Individual Investors' Mutual Fund Share Selling Decisions

2005 ◽  
Author(s):  
Zoran Ivkovich ◽  
Scott J. Weisbenner
Keyword(s):  
Mutual Fund ◽  
Individual Investors ◽  
Selling Decisions

A study of prominence for disposition effect: a systematic review

2019 ◽  
Vol 11 (1) ◽  
pp. 2-21 ◽  
Author(s):  
Syed Aliya Zahera ◽  
Rohit Bansal
Keyword(s):  
Mutual Funds ◽  
Behavioral Finance ◽  
Mutual Fund ◽  
Institutional Investors ◽  
Disposition Effect ◽  
Individual Investors ◽  
Content Type ◽  
Experimental Market ◽  
The Individual ◽  
The Impact

Purpose The purpose of this paper is to study the disposition effect that is exhibited by the investors through the review of research articles in the area of behavioral finance. When the investors are hesitant to realize the losses and quick to realize the gains, this phenomenon is known as the disposition effect. This paper explains various theories, which have been evolved over the years that has explained the phenomenon of disposition effect. It includes the behavior of individual investors, institutional investors and mutual fund managers. Design/methodology/approach The authors have used the existing literatures from the various authors, who have studied the disposition effect in either real market or the experimental market. This paper includes literature over a period of 40 years, that is, Dyl, 1977, in the form of tax loss selling, to the most recent paper, Surya et al. (2017). Some authors have used the PGR-PLR ratio for calculating the disposition effect in their study. However, some authors have used t-test, ANNOVA, Correlation coefficient, Standard deviation, Regression, etc., as a tool to find the presence of disposition effect. Findings The effect of disposition can be changed for different types of individual investors, institutional investors and mutual funds. The individual investors are largely prone to the disposition effect and the demographic variables like age, gender, experience, investor sophistication also impact the occurrence of the disposition effect. On the other side, the institutional investors and mutual funds managers may or may not be affected by the disposition effect. Practical implications The skilled understanding of the disposition effect will help the investors, financial institutions and policy-makers to reduce the adverse effect of this bias in the stock market. This paper contributes a detailed explanation of disposition effect and its impacts on the investors. The study of disposition effect has been found to be insufficient in the context of Indian capital market. Social implications The investors and society at large can gains insights about causes and influences of disposition effect which will be helpful to create sound investment decisions. Originality/value This paper has complied the 11 causes for the occurrence of disposition effect that are found by the different authors. The paper also highlights the impact of the disposition effect in the decision-making of various investors.

scholarly journals A Study Mutual Fund Investors Behavior in Kerala

2016 ◽  
Vol 5 (1) ◽  
pp. 122
Author(s):  
Sanesh. C ◽  
Greeshma. V
Keyword(s):  
Mutual Fund ◽  
Demographic Variables ◽  
The Other ◽  
Individual Investors ◽  
Psychological Processes ◽  
General Base ◽  
Corporate Securities ◽  
The Individual ◽  
Type Of Institution ◽  
Investment Choices

<div><p><em>A mutual fund is a special type of institution, a trust or an investment company which acts as an investment intermediary and invests the savings of large number of people to the corporate securities in such a way that investors get steady returns, capital appreciation and a low risk. This article focus on investors behaviour towards mutual fund schemes is done at a general base. . These expectations of investors are influenced by their perception and humans generally relate perception to action. Investor’s behaviour may change from period to period even if the other variables influencing the behaviour are held constant. The individual investors’ decision making often relies on observable socio-demographic variables to proxy for inherent psychological processes that drive investment choices.</em></p></div>

Individual investors' responses to mutual fund fire sales and sell-side analysts' price-correcting revisions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jinglin Jiang ◽  
Weiwei Wang
Keyword(s):  
Mutual Fund ◽  
Individual Investors ◽  
Earnings Forecast ◽  
Content Type ◽  
Forecast Revisions ◽  
Fire Sales ◽  
Informed Traders ◽  
Trading Decisions ◽  
Information Event ◽  
New Evidence

PurposeThis paper investigates individual investors' responses to stock underpricing and how their trading decisions are affected by analysts' forecasts and recommendations.Design/methodology/approachThis empirical study uses mutual fund fire sales as an exogenous source that causes stock underpricing and analysts' forecasts and recommendations as price-correcting information. The study further uses regression analysis to examine individual investors' responses to fire sales and how their responses vary with price-correcting information.FindingsThe authors first show that individual investors respond to mutual fund fire sales by significantly decreasing net buys, and this effect appears to be prolonged. Next, the authors find that the decrease of net buys diminishes following analysts' price-correcting earnings forecast revisions and stock recommendation changes. Hence, the authors suggest that individual investors are not “wise” enough to recognize flow-driven underpricing; however, this response is weakened by analysts' price-correcting information.Originality/valueThere is an ongoing debate in the literature about whether individual investors should be portrayed as unsophisticated traders or informed traders who can predict future returns. The authors study a unique information event and provide new evidence related to both perspectives. Overall, our evidence suggests that the “unsophisticated traders” perspective is predominant, whereas a better information environment significantly reduces individual investors' information disadvantage. This finding could be of interest to both academic researchers and regulators.

scholarly journals Performance Analysis of the Index Mutual Fund

2019 ◽  
Vol 8 (1) ◽  
pp. 1-5
Author(s):  
Yasmeen Bano ◽  
S. Vasantha
Keyword(s):  
Performance Analysis ◽  
Mutual Fund ◽  
Tracking Error ◽  
Individual Investors ◽  
Investment Fund ◽  
Index Funds ◽  
Secondary Sources ◽  
The Common ◽  
Managed Portfolios

A mutual fund is a professionally managed investment fund that pools together the savings of a number of investors who shares the common financial goals. These investors may be retail or institutional in nature. It offers small or individual investors access to professionally managed portfolios of equities, bonds and other securities. The paper is the study of the performance of Index fund. This is analyzed empirically since the period of 2012 – 2017. The main objective of this research is to evaluate the performance of Index funds. The study examined three parameters such as active returns, tracking error and Jensen’s alpha. In this paper the data has been collected from the secondary sources.

scholarly journals Factors Influencing Investment Decision of the Individual Related to Selected Individual Investors in Chennai City

2019 ◽  
Vol 8 (6S4) ◽  
pp. 457-461
Keyword(s):  
Mutual Fund ◽  
Deposit Insurance ◽  
Tamil Nadu ◽  
Investment Decision ◽  
Vital Role ◽  
Individual Investors ◽  
Factors Influencing ◽  
Online Trading ◽  
The Individual ◽  
Chennai City

The purpose of investment is to gain a profitable returns by investing money .A variety of investment avenues are available to individuals fixed deposit, insurance policies, government securities, corporate bonds, Shares and mutual fund, real estates, commodities, chit funds, post office schemes, investment in gold and silver. Various factors influences the investment decision of the individual. Demographic profile also plays a vital role in investment decision of the individual. Thus, this study aims to find out attitudedifferences in the perception of individual investors on factors influencing investment decision on the basis demographical profile of the individuals. The survey was collected from 374 individuals in Chennai, Tamil Nadu. Descriptive statistics (t-test and f-test) are used to find out the value of mean, standard deviation, standard error, mean of factors influencing individual investment decision. The results found that factors of selection of investment varies according to gender, age, occupation, usage of internet, level of computer knowledge, usage of online trading.

scholarly journals Mutual Funds: An Outrageous Progression in Investment

2021 ◽  
Vol 12 (2) ◽  
pp. 1110-1112
Author(s):  
V.B. Karuna Moorthy, Et. al.
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Large Scale ◽  
Individual Investors ◽  
The Public ◽  
Money Flow ◽  
Key Factor ◽  
Current Scenario ◽  
Small Investors ◽  
Fund Investment

Mutual funds are the key factor for the financial arbitrator. Corporations, governments, and individual investors are benefitted out of mutual funds on a large scale. Mutual funds seem to be an attractive scheme of investment among society. The new money flow in terms of investment yields enhanced results in mutual fund investment. Mutual funds attract small investors to benefit greatly due to diversified capabilities. Shareholders are benefited through mutual funds in numerous ways. This paper tries to analyse the importance of mutual funds and their need in this current scenario. Further, this paper also tries to investigate the ways in improving the growth of mutual fund investment plans among the public.

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