Title: Modeling for Determinants of Mutual Fund Family Performance: Marked Remission to Indian Mutual Fund Industry
Abstract: Indian mutual fund industry is experiencing tremendous growth, which is the outcome of infrastructural expansion and advancement in India. This paper contributes to the mutual fund performance literature by bridging the gap of an empirical research based on determinants of mutual fund family as a predictor of mutual fund performance in the context of Indian mutual fund industry. In preference to treating mutual fund as an entirely independent entity, it has been treated as a larger group, the mutual fund family. It has been witnessed that creating multiple mutual funds is somehow inefficient. So, to overcome the inadequacy associated with single stand alone funds, fund family concept has been launched. This paper encapsulates the central line of reasoning of mutual fund separation theorem and with this foundation it presents the influential factors which contour the fortune of a fund family and its associated funds in the Indian market in the form of an analytical graphical model which represents a set of variables and their interrelationships on the basis of structured questionnaire based on Inductive approach and Likert scale method of responses. Along with this, effect of demographic variables on investor's decision have also been analyzed. A sample size of 200 based on stratified sampling technique has been considered, which have been bifurcated as 100 mutual fund professionals and 100 mutual fund investors. PCA Method of Exploratory Factor analysis has been used for data analysis. Sampling frame considered for data collection are the mutual fund professionals along with mutual fund investors from Delhi/ NCR.
Results of the study reveals that compared to stand alone funds, a fund family has a greater flexibility in reallocating its human and other resources in response to market opportunities and its performance is mainly affected by factors like fund family returns, market coverage, economies and management structure of fund family. Along with this demographic variables also play a very crucial part in framing the psyche of an investor about any investment avenue, especially mutual funds. As mutual funds are in an embryonic stage in India as compared to global market.
Publication Year: 2016
Publication Date: 2016-11-03
Language: en
Type: article
Access and Citation
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot