The performance of mutual fund in Ghana: a case study of Anidaso Mutual Fund

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September, 2016
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The study examines the effect of key macroeconomic variables, specifically exchange rate, interest rate and inflation, on the performance of mutual funds in Ghana.To achieve this objective, monthly firm-specific data were sourced from Anidaso Mutual Fund for the period 2012 to 2015 while country-specific variables were obtained from the Ghana Statistical Service (GSS), Bank of Ghana (BoG) and the World Development Indicators (WDIs) from the World Bank. The study employed the Autoregressive Distributed lag (ARDL) model for the estimation.The study revealed that generally there was deterioration in inflation, exchange rate, and interest rate over the period 2012-2015 in Ghana. Exchange rate has negativebut insignificant impact on the performance of mutual funds in Ghana in both the long- and short-run. Further, there was evidence to support any significant effect of inflation on the performance of mutual funds in Ghana. Again,the long-run effect of interest rateon the performance of mutual funds in Ghana was negative; the short-run effect was also negative.Based on these findings, the study recommended that the government of Ghana must create a conducive macroeconomic environment aimed at reducinginterest rates which would enhance the performance of the mutual funds. Again since the interest rate serves as a premise to an extent in fixing the lending rates of financial intermediaries, a low interest rate would lead to a low lending rate which would enable households and firms to invest more into the fund.
A Thesis submitted to the Department of Economics of the College of Social Sciences and Humanities, Kwame Nkrumah University of Science and Technology, in partial fulfillment of the requirement for the award of Master of Science Degree in Economics,(Banking and Finance Option).