Macro economic factors affecting mutual funds india
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. 5% of the gdp in india mutual fund companies are trying to penetrate the market further with many research papers have focused on various factors affecting mutual fund performance some studies have had a definitive result concluding the impact of a factor on fund performance for. 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. It gauges the economic environment by studying factors in the macro economy such as interest rates, economic growth, exchange rate as well as inflation rate these factors also help in accessing the demand, costing of the product, expansion, and growth.
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. Eventually, it affects economic growth as well as the valuation of the currency in india, inflation has remained elevated for a long time this has forced the reserve bank of india to keep. Factors affecting investors preference for mutual funds in india annexure 1 this survey is for the sole purpose of collecting data for a survey carried out by the icfai business school management students for internship thesis. Macro-economic factors affecting mutual funds in india macro-economic factors affecting mutual funds in india 17 pages 5867 words this is a preview content a premier membership is required to view the full essay view full essay abstract a mutual fund is a form of collective investment that pools money from investors and.
Sacked il&fs md blames lic, macro factors for mess, denies fund diversion charges sankaran asked nclt to appoint an independent foreign agency without conflict of interest, rather than a local one. Risk factors mutual fund investments are subject to market risks, read all scheme related documents carefully investment in mutual fund units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal. There are a number of factors which affect stock prices some factors are firm-specific like a change in management, new product launch, policy change, legal tangles, etc others factors are like political, economic, and technological that cause variation in stock prices. Get a closer look at the prices & performance of franklin templeton’s mutual funds toggle navigation sign in to investor site franklin india growth fund: figzx: equity: franklin insured tax-free income fund sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or.
• key regulations affecting mutual fund industry across the globe base for the mutual fund sector strong macro-economic fundamentals favorable demographics and rising income levels in india, the mutual fund aum/gdp ratio is significantly low at 7% (as of 2015), compared to 114% in australia. Effect of macro economic variables on financial performance of mutual funds industry in kenya macroeconomic variables and mutual fund performance the analyses entailed the broad economy at the regional or national level and affect a large population rather. Risks in mutual funds debt mutual fund risk interest rate risk – when interest rate rises, the price of bonds go down which means you can lose investment value so you have to invest as per the interest rate movement or better will match investment horizon with deft fund average maturities.
Impacts of economic events on performance of mutual funds: evidence from india sushil kumar gupta research scholar but performance of mutual fund in india has been volatile because of several macro-economic factors in the top-down approach seeing the affect of economic event or factors on the mutual funds in india review of literature. Exchange board of india (mutual funds) regulations 1996, as amended till date, and filed with the the performance of the scheme may be affected by the corporate performance, macro-economic factors, changes in government policies, general levels of interest rates and risk associated with changes in the interest rates may affect. Economic factors that affect investment for example, when there is a recession in the economy, the performance of the company will be far from satisfactory on the other hand, if the economy is booming, the company will be prosperous. 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. X asamatrixofobservationsonasetofexplanatory variablesthoughttoaffecttheflowofnewfunds intoaninvestmentcompany, _b asavectorofstructuralparametersthatrelates.
Macro economic factors affecting mutual funds india
A study on factors affecting investment on mutual funds and its preference of retail investors arathy b, this project aims at finding out the factors affecting investment decision on mutual funds and its preference psychological state among mutual fund (mf) investors in india. Read macro-economic factors affecting mutual funds in india free essay and over 88,000 other research documents macro-economic factors affecting mutual funds in india macro-economic factors affecting mutual funds in india & basis for evaluating mutual fund performance by amit gera pgdm 2006-2008 batch. The main hypotheses: macroeconomic factors affect the return of mutual funds, which on these basis two subsidiary hypotheses were considered: the first sub-hypothesis: the exchange rate is significantly effective on the return of mutual funds. Engaging title in green descriptive element in blue 2 lines if needed mutual fund industry in india deloitte perspective january 2016 foreword india has not been unaffected by the macro-economic factors that have been influencing the capital markets globally domestically as well, india inc awaits key reforms and successful implementation of.
- A study on factors influencing the selection of mutual fund company g ravi kumar 1 dr v murali krishna 2 1 research scholar, bharathiar university, coimbatore 2 assistant professor, department of mba, sitams, chittoor abstract mutual fund in indian context is a challengeable event at present.
- The factors affecting interest rates are largely macro-economic in nature: • demand/supply of money- when economic growth is high, demand for money increases, pushing the interest rates up and.
- The study is based on a sample of 431 respondents chosen using convenience sampling to understand the mutual fund buying behaviour of the individual investors the article identifies the various attributes that investors consider important while investing in mutual fund there are two underlying factors of importance that are extracted namely credibility of the fund and miscellaneous features.
Mutual funds is a small fraction but the growth of mutual fund industry is significant to the indian economy and has become an attraction for foreign money managers (sidana and. Besides macro economic indicators, the micro factors and external factors (like geo-political, performance of international financial markets etc,) would also affect your investments you can find india macro economic indicators data in the below couple of websites. Macroeconomic factors affecting mutual fund industry in india the macroeconomic factors are the major determinant of the growth of an economy analyzing the macroeconomic factors gives an idea of the current economy position and a projection of the future of the economy based on which we decide the future of a particular industry.