An evaluation of the determinants of mutual fund performance in ghana
No Thumbnail Available
Date
2023
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
KNUST
Abstract
Mutual fund operators in Ghana have been very influential in the development of the capital markets. They provide advisory services; serve as placement agents and brokers to private clients, government and other companies. Mutual Funds have been widely acclaimed as an effectual way for investing in the financial markets in low cost and low risk manner. Several factors affect the performance of mutual fund and several studies have been conducted to analyses the determinants of mutual fund performance globally and in specific countries such as India, Vietnam, USA and many other countries. This study sought to evaluate what determines performance of mutual fund in Ghana. In an attempt to analyses the fund factors as well as the country level factors, the researcher selected diverse funds which has operated for more than three years in Ghana were selected for the purpose of this review. The data set includes 15 mutual funds operating during the period from 2017 to 20121. It was observed that, there is a positive relationship between macroeconomics and mutual funds’ performance. The review indicated that as Ghana scores better on country-level governance such as regulation effectiveness, political stability, economic growth and financial development, the annual return on mutual fund improves. However, the impact of fund-level factors is diverse with no significant impact of board size and fund age on mutual fund’s performance. Fund managers are recommended to up their game by having thorough understanding of portfolio and risk management so that they can achieve the best returns for their customers. They should also expand awareness of mutual funds through comprehensive advertisement on the print and electronic media and if possible, engage the services of agents and brokers who have adequate product knowledge to embark on directing selling whiles ensuring a minimum operating expense. The research results also suggest that investors should pay attention to the types of funds and operating expense when making an investment decision in mutual funds.
Description
A thesis submitted to the department of accounting and finance department, kwame nkrumah university of science and technology, kumasi in partial fulfilment of the requirements for the award master of science in accounting and finance