Performance Evaluation of Selected Open-Ended Mutual Fund Schemes in India

Sharma, Ishwar Lal; Bharti, .; Verma, Bhawana; Saini, Chanchal

doi:10.22214/ijraset.2023.48519

Cited by 1 publication

(2 citation statements)

References 2 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Overall, the results of the study utilizing the Fama net selectivity model reveal that Investment Managers from Indonesian equity mutual funds need better stock selection ability. This study's results follow the research ofSharma & Verma (2018)…”

supporting

confidence: 86%

“…However, some Investment Managers needed better stock selection ability based on Fama's net selectivity calculations. Most Investment Managers must be more successful in choosing the right stocks for their portfolios because the net selectivity is negative (Sharma & Verma, 2018;Sarkar & Ghosh, 2019). The weak ability of Investment Managers could be because most Investment Managers carry out a buy-and-hold strategy to limit trading activity (Thobejane et al, 2017).…”

Section: Empirical Review and Hypothesis Developmentmentioning

confidence: 99%

See 1 more Smart Citation

Analyzing the Ability of Investment Managers in Equity Mutual Funds during the Covid-19 Pandemic in Indonesia

Arimbi,

Achsani,

Bandono

2023

IJFBS

View full text Add to dashboard Cite

Mutual fund is one of the investment instruments widely used as an investment option. There are two essential things to be considered by the Investment Manager as a mutual fund manager: the stock selection and the market timing ability. The Covid-19 pandemic has caused many investors to experience potential investment losses. Understanding stock selection and market timing will be needed for determining which Investment Managers perform well in managing equity mutual fund, especially while dealing with the Covid-19 pandemic. The objective of this study is to analyze the ability of Investment Managers to perform stock selection and market timing, the performance of equity mutual fund, and the effect of stock selection and market timing ability on the performance of equity mutual fund in Indonesia. This study applies the Fama net selectivity methods to assess stock selection ability and Treynor-Mazuy and Henriksson-Merton models to analyze market timing ability. Sharpe, Treynor, and Jensen's alpha methods are also used for measuring mutual fund performance. The data is processed per mutual fund to recognize each mutual fund's stock selection and market timing ability. Furthermore, the research spans two time periods: before and following the Covid-19 pandemic. A dataset of 104 equity mutual funds from 2016-2021 has been analyzed. The findings show that only 9 and 12 Investment Managers have stock selection ability prior to and following the Covid-19 pandemic, respectively. According to Treynor Mazuy model, there are only two Investment Managers with market timing ability prior to the Covid-19 pandemic, and only twelve Investment Managers have market timing ability during the Covid-19 pandemic, according to the Henriksson-Merton model. Every mutual fund with stock selection ability outperformed the benchmark. However, not all equity mutual fund with market timing ability outperformed the benchmark.

show abstract

supporting

confidence: 86%

Section: Empirical Review and Hypothesis Developmentmentioning

confidence: 99%