Year: 2018
Type: conference-paper
Abstract: Mutual funds are vehicles for wealth generation in the long term. Therefore investors, fund managers and advisors need to predict the future winners in term of investment style and economic cycles. Indian mutual fund industry has reached new heights in the last decade and witnessed a healthy evolution in terms of number of players, number of folios opened and total assets under management. With a plethora of schemes available in the Indian market, investors before making any investment decision considers the past performance of these mutual fund schemes although past performance is not a guarantee for future performance. Thus, this paper analyses and presents the empirical evidence with regard to the performance persistence of mutual fund schemes and examines whether their past performance provides useful information for predicting the future performance. We have taken a sample of 30 mutual funds schemes and analysed for a period of eleven years from January 2007 to December 2017. For the analysis, various parametric and non-parametric techniques such as Risk Adjusted, regression analysis, etc have been used. Results are a mix of persistence and nonpersistence and do not confirm presence of performance persistence in mutual funds. The results are typical of an industry still evolving and in a nascent stage.
Institution: K J Somaiya Institute of Management
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W2906800306