...MUTUAL FUNDING: IMPACT ON THE GHANAIAN ECONOMY A comparative study of two mutual funds companies in Kumasi DEPARTMENT OF BUSINESS STUDIES EDMUNDSON LAWRENCE KOBINA 1.0 INTRODUCTION 1.1 BACKGROUND TO THE STUDY Over the years in Ghana, the private sector has had it difficult raising capital and adequate funds for investment and other business activities, this led to the undertaking of a number of financial sector reforms by the government. The emergence of mutual funds into the Ghanaian financial sector has been as a result of these reforms. This is to facilitate capital generation and savings mobilization for the private sector to help them accomplish their organizational objectives. It has become evidently clear that, to achieve development in the economy in terms of high gross domestic product (GDP), a better per capita income, less unemployment and reduction in inflation, the private sector of the economy should be encouraged to lead in the generation of wealth. Capital for investment in this country (Ghana) is either sought for internally or externally but the Ghanaian government like its’ counterparts in other African countries have been relying heavily on external funds from developed economies and donor communities to be able to implement public sector development policies. This has not been so easy in recent years due to the diversification of these funds to countries such as China and other Asian countries that are now better...
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...Size and Performance of Chinese Mutual Funds: The Role of Economy of Scale and Liquidity* Ke Tanga,b, Wenjun Wanga and Rong Xub a) Hanqing Advanced Institute of Economics and Finance, Renmin University of China b) School of Finance, Renmin University of China * Contact Author: Ke Tang, Hanqing Advanced Institute of Economics and Finance and School of Finance, Renmin University of China. Email: ketang@ruc.edu.cn. We wish to thank participants in the European Financial Management Association Symposium on Asian finance (Beijing) for helpful comments. We are also grateful to the anonymous referee whose suggestions greatly improved the paper. Tang acknowledges financial support from the Fundamental Research Funds for the Central Universities, and the Research Funds of Renmin University of China. Electronic copy available at: http://ssrn.com/abstract=1933647 Size and Performance of Chinese Mutual Funds: The Role of Economy of Scale and Liquidity Abstract Using a detailed stockholding for a comprehensive sample of Chinese open-end equity mutual funds from 2004 to the first half of 2010, we investigated the effect of economy of scale and liquidity on the relationship between fund size and performance. We find that an inverted U-shape relationship exists between fund size and performance as measured by various performance benchmarks. Both economy of scale and liquidity play important roles in Chinese mutual funds. Furthermore, their combined effect explains the...
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...rising income, and increasing awareness, mutual funds in Malaysia are becoming a preferred investment option compared to other investment avenues like Fixed Deposits (FDs) and postal savings that are considered safe but give comparatively low returns. But before investing in mutual funds, investors have to analyze the factors of the economy, industry and company within the investment environment in which they operate. There are several macro-economic factors having influence on the investment choices. The investigator intends to study more particularly, the impact of quantitative economic variables on the investment of mutual funds. The trends of the industry also have to be examined from time to time. In response to the changing circumstances, the fund houses have introduced a host of interesting technological innovations to grab the attention of the investors. Investors need to correctly appraise the risks and rewards of investing in schemes which seek to offer attractive returns. Total of 122 respondents were selected for data analysis. The respondents’ profile consists of demographic data namely, age, gender, occupation background, educational background, investment habit and years of investing activities. The gender, monthly income and race of respondent are not relevant for this research since it is basically focused on the investors’ habit in Malaysia. The perception will be taken into consideration as per their views on mutual fund investment. The last and final analysis...
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...Marketing Research Project Report Topic: The Changing Trends in Investment Pattern of People in India In Partial Fulfilment of the Course Marketing Research Submitted To: Dr Shalini Trivedi, Assistant Professor, Department of Economics, Amity Business School, Amity University. Submitted by: Shivani Mehta (E 12) Nupur Mittal (E 21) Abdul Azeem (E 24) Prateek Saini (E 27) Jalees Ahmed (E 57) Rashmita Bora (E 61) DECLARATION We hereby declare that all the work presented in the project report entitled “The changing trends in investment patterns of people in India” of the subject Marketing Research at Amity Business School, Amity University, Noida is an authentic record of our own work carried out under the guidance of Dr. Shalini Trivedi, Assistant Professor, Department of Economics, Amity Business School, Amity University. CERTIFICATE This is to certify that project report entitled “The changing trends in investment patterns of people in India” of the subject Marketing Research, which is submitted by Nupur Mittal, Rashmita Bora, Shivani Mehta, Prateek Saini, Abdul Azeem and Jalees Ahmed at Amity Business School, Amity University, Noida is an authentic record of the candidate’s own work carried out by them under our guidance. The matter embodied in this thesis is original and has not been submitted for the award of any other degree. Dr. Shalini Trivedi, Assistant Professor, Department of Economics (Project Guide) ACKNOWLEDGEMENT We express...
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...A PROJECT ON CAPITAL MARKET GUIDE CERTIFICATE It is hereby certified that the project report on “CAPITAL MARKET”, being submitted by Shelly jumba student of the degree of Master of Business Administration (3rd Sem) of CT Institute of Management and Information Technology, Jalandhar which affiliated to Punjab Technical University, Jalandhar is an original work carried out successfully under my guidance and supervision and that no part of this project has been submitted for any other degree/ diploma. The sincerely efforts put in during the course of investigation is hereby acknowledged. Project guide Miss Shivani jagneja Lect. CTIM& IT DECLARATION This project entitled Empirical Study on “CAPITAL MARKET” is submitted in partial fulfilment of the requirement for the award of degree of master of business administration of Punjab technical university, Jalandhar. .This research work has been done only for MBA only and none of this research work has been submitted for any other degree. The assistance and help during the execution of the project has been fully acknowledged. PREFACE The successful completion of this project was a unique experience for us because by visiting many place and interacting various person, I achieved a better knowledge about this project. The experience which I gained by doing this project was essential at this turning point of my carrier this project is being submitted which content detailed analysis of the research under taken by me...
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... Jingwen Liu 25402323 Part A Introduction With the development of financial market, the technical analysis tools play an important role for the security evaluation. According to Penman (2010), investors estimate the stock future prices and trends by collecting and estimate the past prices and information. However, there are some conflict points on the momentum strategies performance, and it is a technical tool with multiple economy factors needs to be considered into. Why do momentum strategies exist? Refer to both behavioural and market-based argumentations. Momentum strategies are the stock analysis stool exists in the financial evaluation process, also in funds and currency investment. According to Chan, Jegadeesh, and Lakonishok J (1996) said, "it is a strategy that buying stocks in a high returns over the past three to twelve months, and selling those that had the poor returns over the same period." In the other words, the outperform stock will remain well but the underperform stock will continually worse (Fama & French, 1992). From the views from market- based argumentation, massive of evidence find that the momentum strategies are profitable for financial investment. For example, Aharoni, Ho and Zeng (2012) had a test in the profitability of momentum strategies in Australia stock market, which be found that the...
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...INVESTMENT STRATEGY AND PORTFOLIO MANAGEMENT Executive Summary Kaplan is a charitable fund established in 2007 to provide an investment vehicle for investors seeking to finance some educational objectives. The aim of the fund is to grow members’ contributions through investment in securities. Investors in Kaplan are yet to start making withdrawals from the fund but are due to begin in June 2012. This report looks at current issues in the investment environment in the UK, Europe, and the rest of the world which have an impact on Kaplan’s operations. It also examines strategic asset allocation and investment strategies that Kaplan should employ to achieve its goals. In addition, the report recommends areas in which the fund’s management should actively manage investments and those areas in which passive management would be the better option. Overview of the Investment Environment In recent years, the global fund sector has continued to register robust growth in many countries with developed financial markets. Collective investment schemes are becoming the most preferred investment vehicles for investors because of their obvious advantages including diversification, professional management of investments, liquidity and investment advice for investors and superior returns (Roll, 2008). Indeed, as by the end of 2011, the global investment fund industry was worth US $11.7 trillion which translates to 17 percent of primary securities holdings around the world. However...
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... 1. Mutual Fund Services Explain why mutual funds are attractive to small investors. How can mutual funds generate returns to their shareholders? ANSWER: Mutual funds enable small investors to benefit from a portfolio manager’s expertise, and from diversification capabilities due to a large portfolio. Mutual funds can provide dividends or capital gain distributions to investors. In addition, investors also benefit from share price appreciation; they may be able to sell the shares at a higher price then what they paid. 2. Open- versus Closed-End Funds How do open-end mutual funds differ from closed-end funds? ANSWER: Shares of open-end mutual funds can be sold back to the sponsoring investment company, whereas shares of closed-end mutual funds cannot. 3. Load versus No-Load Mutual Funds Explain the difference between load and no-load mutual funds. ANSWER: Load mutual funds require a fee to help pay for marketing commissions. No-load mutual funds do not require such a fee. 4. Use of Funds Like mutual funds, commercial banks and stock-owned savings institutions sell shares, but the proceeds received by mutual funds are used in a different way. Explain. ANSWER: Shares issued by commercial banks and savings institutions are used to obtain capital, which may be used to finance their fixed assets such as land and buildings. Shares issued by mutual funds are used to obtain funds, which are invested in the mutual funds portfolio. 5. Risk of Treasury Bond Funds Support...
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...------------------------------------------------- Case Study-Dfa Dimensional fund Advisors Submitted By:- Azouaou Dahmoune Drishti Oza Jeffery Meeks Kesha Patel Urvi Jain Submitted By:- Azouaou Dahmoune Drishti Oza Jeffery Meeks ...
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...Analysis of Mutual Fund for SBI Mutual Fund and Securities Ltd. Final Managerial Economics Submitted by: SHUBHAM SHARMA Division: B Roll No: 42 Class: BBA.LLB PRN NO: 14010224105 OF Symbiosis Law School, NOIDA Symbiosis International University, PUNE In March 2015 Under the guidance of Prof. Sweta Saurabh & Prof Pushpa Negi Course in charge Index S.NO | PARTICULARS | PAGE NO. | 1. | C E R T I F I C A T E | 3 | 2. | ACKNOWLEDGEMENT | 4 | 3. | INTRODUCTION | 5-6 | 4. | HISTORY | 6 | 5. | DIFFERENT TYPES OF MUTUAL FUNDS | 6-8 | 6. | LITERATURE REVIEW | 8-11 | 7. | OBJECTIVES | 11 | 8. | RESEARCH HYPOTHESIS OF THE STUDY | 11 | 9. | ANALYSIS | 11-12 | 10. | CONCLUSION | 13 | 11. | REFERENCES | 14 | C E R T I F I C A T E The project entitled “Analysis of Mutual Fund for SBI Mutual Fund and Securities Ltd.” submitted to the Symbiosis Law School, NOIDA for Managerial Economis as part of Internal assessment is based on my original work carried out under the guidance of Dr.Pushpa Negi and Professor Sweta Saurabh from 17th December,2014 to 15th March ,2015. The research work has not been submitted elsewhere for award of any degree. The material borrowed from other sources and incorporated in the thesis has been duly acknowledged. I understand that I myself could be held responsible and accountable for plagiarism...
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...Set forth an investment structure detailing permitted asset classes, normal allocations and permissible ranges of exposure for the Portfolio. • Encourage effective communication between the Investor and the Advisor. • Create the framework for a well diversified asset mix that can be expected to generate acceptable long term returns at a level of risk suitable to the Investor. The Statement has been developed from an evaluation of many key factors which impact the Investor's specific situation and investment objectives. This Statement is not a contract. It is intended to be a summary of an investment philosophy that provides guidance for the Investor and the Advisor. THE PORTFOLIO The Portfolio will maintain an active asset allocation strategy. The Portfolio will be invested exclusively in mutual funds. As a result, assets held in the Portfolio will be highly liquid. The Board of Trustees of each mutual fund is ultimately responsible for selecting and monitoring investment managers to advise each fund. Investment managers are selected and monitored on the basis of the following criteria: • The manager's specification of and adherence to a clearly articulated and appropriate investment philosophy and process. • Material changes in the manager's organization and personnel. • Comparisons of performance results to appropriate indices that take into account...
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...Critics of negative screening charge that merely excluding companies for their socially repugnant practices has no net impact, because there is always someone out there that willing to buy their shares instead. They assert that screening offensive companies may make the investor feel better about where they are putting their money, but they are not helping encourage social change and environmental improvement. But negative screening still has an appropriate place in the quiver of tactics used by socially responsible investors, to be complemented by positive screening and shareholder activism, and will remain the most palatable starting point for many. It is also important to note that while one investor excluding their investment from a company because of a particular activity will not make that company mend its ways, its the cumulative effect that's important. This is analogous to voting in a national election, where individual votes collectively create a "voice." For example, the recent struggles of the tobacco industry illustrate the cumulative and emergent effects of investor and consumer advocacy over its health effects. Most people imagine that the majority of companies included by positive screening are smaller companies embarking on products that may contribute to the world's future economic and environmental sustainability. Alternative forms of energy that produce less pollution, such as solar power, wind power, and hydrogen fuel cells, constitute a rapidly growing...
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...INDEX FUNDS.. FM n FS PROJECT Active and Passive Management Before we get into the details of index funds, it's important to understand the two different styles of mutual-fund management: passive and active. Most mutual funds fit under the active management category. Active management involves the art of stock picking and market timing. This means the fund manager will put his/her skills to the test trying to pick securities that will perform better than the market. Because actively managed funds require more hands-on research and because they experience a higher volume of trading, their expenses are higher. Passively managed funds, on the other hand, do not attempt to beat the market. A passive strategy instead seeks to match the risk and return of the stock market or a segment of it. You can think of passive management as the buy-and-hold approach to money management. Defn- An index fund a collective investment scheme that aims to replicate the movements of an index of a specific financial market, or a set of rules of ownership that are held constant, regardless of market condition. An index fund is a mutual fund which merely invests in the securities in the index. It is passive, in the sense that absolutely no effort is made to produce results better than the index. HISTORY: Index funds haven't been around forever -- how did they come about? Long ago, there was a student at the University of Chicago who studied modern ideas of finance taught...
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...or “the group”) earns profits by charging direct and indirect fees including commissions on the total assets under management (“AUM”) of $847 bn . The group offers a full range of financial products comprising U.S., non-U.S. and global mutual funds/investment management, across cash management, equity, fixed income segments as well as alternative asset classes, such as private equity and real estate. It has a worldwide client base of institutional and retail clients, including governments, corporations, endowments, foundations and individuals. The equities segment accounts for $370 bn1 AUM spread over a mix of qualitative and quantitative approaches including $76 bn in Behavioral Finance (“BF”) strategies. Hence, BF represents 10% of the AUM of the group and is growing at a fast pace. In the United States, the BF AUM has increased from $100m to $20bn within a space of three years. How do they compete in managing and marketing retail mutual funds? JP Morgan competes with other retail funds by introducing investment strategies to retail investors that are not widely present in the retail mutual fund industry and having an effective and strong marketing. It was among the first global funds to innovate and introduce a retail mutual fund based on behavioral biases by drawing on the relatively recent body of academic findings in BF. The JP Morgan marketing programme is designed to educate brokers to help clients avoid common human tendencies that affect the ability to pick...
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...Investment Fund and Security Analysis Assignment Question 1 There are several examples of the various types of mutual funds. In fact the list is listless but the most common ones include; Aggressive growth funds, Growth funds, Growth and Income Funds, Value Funds, International Equity Funds, US Government Income Funds, Municipal Bond Funds, Corporate Bond Funds, High Yield Bond Funds, Treasury Bills, Money Market Funds among many more. Load Mutual Funds are funds that have a sales charge or commission attached when they are purchased. The charge is used to compensate or pay for the services of the intermediary their time and expertise in selecting the appropriate mutual fund. Such charge is either paid while buying the funds or when selling them. On the other hand, No-Load Mutual Funds are either purchased directly or indirectly through a mutual fund company. These funds may have a small 12b-1 fee i.e. the cost of distribution which is incorporated into the fund as expense ratio. The expense ratio is paid by the shareholder of the fund on Daily basis through reduction of the price of the fund. Most investors prefer no-load funds since there is no more expenses required to pay for the broker services. Question 2 There are several types of mutual funds and they include the following; Stock Funds Stock Funds are at times referred as equity funds is a fund that invests in stocks which at times are also known as equity securities. These types of fund mainly consist of stock though...
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