Purpose-Financial innovation augment the investment alternatives of individuals, allowing them to have different investment opportunities in changing economic conditions. Channeling the idle savings into productive sectors increase the fund margin of households and entrepreneurs facing financial squezee. The aim of this paper to examine the impact of financial services on savings and domestic savings. The paper analyzes the main determinants of savings in twenty upper middle income, high income countries for the period of 2005-2014. Methodology-In this paper, we build panel data analyses to investigate the impact of innovation in financial markets on savings and domestic savings. Findings-Level of financial innovation and financial access are important parameters affecting both gross savings and gross domestic savings. higher financial innovation leads to higher savings and domestic savings. The net interest margin and banking crisis has a negative effect on savings in both models. Increase in capital formation contribute to higher gross savings and gross domestic savings. Conclusion-The paper finds that financial innovation and diversification is an important lever in the increasing of savings, therefore confirming the "liberalization of financial market" hypothesis.

The mutual funds' performance over time can be driven by a number of dynamic determinants including financial innovation. In fact, financial innovation can be considered as a key factor for improving the performance and increasing the profitability of mutual funds. The purpose of this study is to examine the process of financial innovation in Turkey and its role in accelerating the development and improvement of the performance of the mutual funds industry. This study provides a framework to analyze and evaluate the developments in financial practices over the eight-year period from 2011 to 2018. The process of financial innovation is defined as new financial products and services. Based on panel analysis it is observed that the activity of mutual funds responded to a great extent to innovative market forces.

Capital asset pricing model (CAPM) brings deep intuitive understanding of the relationship between expected return and risk. Unfortunately, the empirical record of the CAPM has not been satisfactory since its commencement. The empirical testing of CAPM is void in most cases due to the use of an inefficient index as a proxy for market portfolio. Plausible tests require a well-diversified market portfolio which so far has been unfeasible to obtain. Lack of validity in empirical records has been caused by complexity in exerting valid estimations of the beta coefficient. This chapter judges which of the indices provides investors the best beta forecast and questions which time period should be selected for beta calculation. This chapter reveals that the choice of return intervals causes variations in beta estimation of the security. Applying higher frequency has an advantage in that it increases the number of observations, but a shortfall is that beta tends to have substantial bias with shorter return intervals used.