Factors that affect mutual fund investment decision hs and gill, ss (2011) 'factors that affect mutual fund investment the attention can be relate d to economic indicators, mutual. Mutual funds - there is a collection of investors in mutual funds that have professional fund managers that invest in the stock market collectively on behalf of investors mutual funds offer a better route to investing in equities for lay investors. Investment performance and risk the primary factor affecting mutual fund performance is the change in the value of its holdings in general, share prices rise when the market is up, and mutual funds follow. Mutual fund investments, which are generally considered to be less risky than other financial instruments such as shares and debentures, have also suffered in the general atmosphere of volatility the present study investigates the effect of macroeconomic variables on mutual fund schemes, in terms of returns and volatility. The truth is that mutual fund navs have no impact on the performance of a mutual fund, and you should ignore the nav while making a decision to buy a mutual fund, and it shouldn't figure in your decision process at all.
Mutual funds provide diversification, divisibility, low transaction costs, access to a broader array of assets and professional management for the individual investor, factors that have propelled their popularity in the past decades, according to saraoglu and detlzer (2002. Mutual fund is the pool of the money, based on the trust who invests the savings of a number of investors who shares a common financial goal, like the capital appreciation and dividend earning. Index of leading economic indicators and is directly affected by factors, mutual fund flows is a measure issued monthly by the investment company institute. According to association of mutual funds in india (amfi), a body that is dedicated to develop mutual fund industry on professional, healthy and ethical lines in india, at present, there.
The volatility in the value of equity is due to various micro and macro economic factors like economic and political developments, changes in interest rates, etc affecting the securities. When you decide to invest your finances, the chances are good that the estimated return of the investment asset (which could be stocks, bonds, real estate, mutual funds, etc) has factored. • key regulations affecting mutual fund industry across the globe base for the mutual fund sector strong macro-economic in india, the mutual fund aum/gdp. In india, mutual funds must be registered with securities exchange board of india (sebi) is the regulatory body for all the mutual funds the only exception is the uti, since it is a corporation. Commenting on macro-economic factors the report said, a closer look at the customer profile of the indian it sector explains why the industry is in trouble the us accounts for 58% of the market and the uk another 19.
The novelty behind this study is to view the mutual fund industry and the macro-economic environment from a newer perspective by focusing on a developing economy distinguishing it from what the previous studies have done. Macroeconomic factors which affect the returns and volatility of particular mutual fund schemes, which, on the one hand, would enable fund managers to manage the risk profiles of their portfolios more effectively and, on the other hand, would enable. Infrastructure infrastructural development is one of the most important factors which influence real estate prices in india the presence of roads, airports, flyovers, malls and bus terminals and other facilities in the vicinity of the property, helps in value escalation of the same. Foreign account tax compliance act (fatca) is a us government tax policy to which india is also a signatory as per this act, the indian financial institutions like indian mutual funds are required to report investment transactions of us persons and entities to the us government.
Equity linked savings scheme (elss) is a type of mutual fund, which invests the corpus in equity and the equity related products these schemes offer tax rebates to the investors under specific provisions of the indian income tax act, 1961. Mutualfundindia research page helps you in key reports related to economic, equity, debt, commodities on different time frames are available some of the regular reports are daily dossier, weekly market wrap up, wpi inflation update, iip update, monetary policy update, balance of payment update, roundup, thoughts, event update, nfo update and interview. X asamatrixofobservationsonasetofexplanatory variablesthoughttoaffecttheflowofnewfunds intoaninvestmentcompany, _b asavectorofstructuralparametersthatrelates. Invest in mutual funds this study examines the impact of macroeconomic variables (exchange rate and inflation rate) on the return of mutual funds in iran hypotheses of this study is tested by investigating panel data of 11 mutual funds since 2008 to 2011 with monthly data gls procedure by eviews7 software was used for data analysis. Macro-economic factors affecting mutual funds in india abstract a mutual fund is a form of collective investment that pools money from investors and invests the money in stocks, bonds, short-term money-market instruments, and/or other securities.
The level of maturation of these elements can make china more attractive for fdi relative to other nations, such as india, that compete and vie for the same investment capital. Kindly note that all the above factors are inter-linked besides macro economic indicators, the micro factors and external factors (like geo-political, performance of international financial markets etc,) would also affect your investments. Debentures, bonds, mutual funds, derivates and so on the majority of the market is governed by non-tangible and non-quantifiable factor known as market sentiments.
Mutual funds and securities investments are subject to market risks and there can be no assurance and no guarantee that the objectives of the mutual fund will be achieved as with any investment in securities, the nav of the units issued under the schemes(s) can go up or down depending on the factors and forces affecting the capital markets. Macro economic factors affecting mutual funds india origin of mutual fund industry in india is with the introduction of the concept of mutual fund by uti in the year 1963 though the growth was slow, but it accelerated from the year 1987 when non-uti players entered the industry.
A mutual fund generally states its own investment objectives and investors as a part of their own investment strategies schemes, tr choose the appropriate mutual fund for investment. The first mutual fund in india was launched by the unit trust of india (uti) in the mid-1960s, and since then, mutual funds have come a long way as an investment option the history of the mutual fund industry in india can be divided into four phases.