arsalan fyp ppt

7/30/2019 Arsalan Fyp Ppt

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Muhammad Arsalan

Affect of Fund Size on Mutual Fund Performance

FINAL YEAR PROJECT

Topic


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Objective Importance

Introduction

Population, Sampling Technique, and Size

Data and Methodology

Hypothesis

Results

Conclusion

Recommendation

Contents


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My objective in this study was

To find out the affect of mutual fund size on mutual fund

performance To determine the relation between mutual fund size and its NAV

return

Objective


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This study will be a helpful guideline for the investors who

want to invest in mutual funds

Especially small investors who seek for safer opportunities

investment with handsome returns.

Importance


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Mutual fund refers to a pool of securities

A number of investors make investment in it with a common objective of getting

profit, and it is managed by professional fund managers

It is diversified in nature, therefore, it is considered safe and less risky

investment

There are two basic structural types of mutual funds

Open end funds: continue to sell and repurchase shares after their initial public offerings

Close end funds: operates like a public limited company, and its stock trades on the

regular secondary market

In Pakistan, Mutual Funds Association of Pakistan (MUFAP) is the tradebody for Pakistan's multi billion rupees asset management industry.

Introduction


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Population I have worked on open end type of mutual funds. There are 126 open

mutual funds working in Pakistan

Sampling Technique In this study I have exercised convenience sampling and I have picked

up the samples which I got conveniently from these 126 open endmutual funds

Sample Size I have used last five years quarterly data of the nine open end funds out

of the total number of population

Population, Sampling Technique & Size


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I used,

Last five years quarterly data, mutual funds NAV returns as

dependent variable, and

Total size or volume of the fund as the independent variable

I used regression and correlation to analyze the relation

between mutual funds size and NAV return

Data and Methodology


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Ho:Mutualfund size does not affect NAV returns

HA:Mutualfund size affects NAV returns

Hypothesis


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According to the regression result

As my P value is 0.0786, which is less than 0.1

Therefore,

My null hypothesis, mutual fund size does not affect NAV returns, has been rejected

According to the results, I have found an inverse relation between mutual fund sizeand NAV returns.

Because,

The value of coefficient is -0.275229 and it is showing the inverse relation between thevariables I have used.

The value of R square is 0.0702

The value of correlation is -0.16295

Results


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-1

-0.8

-0.6

-0.4

-0.2

0

0.2

0.4

NAV Returns


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In the graph it can be seen that initially, in 2007, there were bothnegative and positive results on and off

But moving ahead it is showing disastrous negative returns thatdestroyed the major investment in the mutual funds

It was the time when recession was on its peak and there was amassive liquidity crisis in the world, this business also affected verymuch.

Later on it is indicating the recovery but it is not well enough which canovershadow the past destructions.

Because of these devastating returns asset management companies arestill striving to cater the effects of these circumstances.

Conclusion


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Government must ensure the proper law and order situation in thecountry

It is also very important to implement such policies which can be

effective to keep the inflation rate as low as possible. It will consequently

give the confidence to the investors.

Government should create investor friendly environment and implement

flexible tax policies i.e. do not impose taxes with different names

AMCs should maintain a contingency fund in order to cope with thesituations which they have faced in the couple of two years back, like

liquidity crisis and economic recession.

Recommendation


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Thank You

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