The macroeconomic factors that affect mutual fund performance in Malaysia / Sheik Muhammad Fareis Mohd Nazri

• Main Author: Mohd Nazri, Sheik Muhammad Fareis
• Format: Thesis
• Language: English
• Published: 2022
• Subjects: Macroeconomics; Investment companies. Investment trusts. Mutual funds
• Online Access: https://ir.uitm.edu.my/id/eprint/96706/1/96706.pdf; https://ir.uitm.edu.my/id/eprint/96706/

The goal of this research is to observe and comprehend the elements that drive mutual fund performance in Malaysia, allowing participant to gain more knowledge of the elements influencing their performance. This research focus about the macroeconomic factors that affect mutual fund performance that happen in Malaysia. It also demonstrates that the mutual fund sector is positively affected by problems that happen in Malaysia. The study aim is to investigate the macroeconomic factors that affect mutual fund performance in Malaysia. Furthermore, the dependent variable that involved is Net Asset Value (NAV) that being used to look at the mutual fund performance while the independent variables are Gross Domestic Product, Money Supply, and Inflation Rate. The dataset is collected from secondary sources from Securities Commission Malaysia, Bank Negara Malaysia, CEIC Data and World Bank. Data gathering begins from year 2001 to year 2020 by yearly basis. For this research study, it refers to the Malaysia's mutual fund as the target population which investigates 20 years of its performance. The methodology of Multiple Regression Analysis will be used for analyzing data by using E-Views 12 Software. Then, the other methods that will also be conducted are descriptive analysis, correlation analysis, normality test, autocorrelation test, heteroskedasticity test, multicollinearity test, model specification (Ramsay RESET Test) and multiple linear regression analysis. The result of findings stated that only money supply has a significant influence on mutual fund performance (net asset value) while the other two independent variables which are gross domestic product and inflation rate do not have significant influence on mutual fund performance (net asset value). This research actively supports, including financial investors, investment advisors, finance experts, policymakers, and financial market regulators as well as corporations.