"A STUDY ON THE RELATIONSHIP BETWEEN PORTFOLIO TURNOVER, FUND’S AGE, PAST PERFORMANCE, AND FUND MANAGER’S TENURE WITH THE PERFORMANCE OF CHOSEN INFRASTRUCTURE FUND"
Abstract
This study examines the performance of Five Thematic Infrastructure funds from March 2014 to December 2018. We have used quarterly data from all these years for better comparison and analysis. Four factors, including Portfolio Turnover ratio, Past Performance, Age of the fund and Tenure of the fund managers, were used to compare the returns of the different schemes. All these Independent variables are playing very active role in affecting the dependent variable that is mutual fund returns. We discovered some interesting results after applying Pearson's correlation coefficient approach to the data we collected. The analysis showed that of the four variables, Portfolio Turnover and Past Performance were positively correlated with returns, but the other two, Fund’s Age and Fund Manager tenure, were negatively correlated. We believe this study will be very useful in understanding the impact of each of these variables on fund performance.
Keyword : Mutual funds, performance evaluation, portfolio turnover, past performance, ageing of the fund
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Amadi, Confidence & Amadi, Felicia. (2017). Another Look at Portfolio Turnover and Mutual Fund Performance. International Journal of Economics and Finance. 9. 95. 10.5539/ijef.v9n10p95. Arnold L. Redman et al (2000)," The performance of global and International Mutual funds," Journal of Financial and Strategic Decisions, Volume 13(1), pp. 75-85. Dr.R.Narayanasamy, V. Rathanamani (2013), “Performance evaluation of equity mutual funds(on selected equity large cap funds)”, (Vol. 2). Trichy: International journal of business and management invention. Dr.S.Narayanrao. (2003). Performance evaluation of India mutual funds: National stock exchange in India. Elton, Edwin & Gruber, Martin & Blake, Christopher. (1996). The Persistence of Risk-Adjusted Mutual Fund Performance. The Journal of Business. 69. 133-57. 10.1086/209685. Guyatt, D., & Lukomnik, J. (2010). Does Portfolio Turnover Exceed Expectations? Rotman International Journal of Pension Management, 3(2), 40–45. https://doi.org/10.3138/rijpm.3.2.40 Howell, Michael. (2001). Fund Age and Performance. The Journal of Alternative Investments. 4. 57-60. 10.3905/jai.2001.319011. Irwin, Brown, FE, et al., “A Study of Mutual Funds: Investment Policy and Investment Company Performance” reprinted in Hsiu-kwangwer and Alan Jzakon (Ed.) Elements of Investments, New York: Holt, Renchart and Winston, (1965), pp.371-385. J. C. Bogle (1998). The implications of style analysis for Mutual fund performance evaluation, Journal of portfolio management, Vol. 24, No. 4, pp. 34 - 42. J.K. Raju (2015), "Performance Evaluation of Indian Equity Mutual Fund Schemes," Journal of Business Management & Social Sciences Research, Vol. 4(11) pp. 601-604. Khurshid Ahmad Butt (2017), "Risk and Return Analysis of Mutual Fund Industry in India," European Journal of Economic Studies, Vol. 1(1), pp.8-19. M.M. Goyal (2015), "Performance Evaluation of Top 10 Mutual Funds in India," Indian Journal of commerce & Management Studies, Vol. VI Issue 1, pp. 51-55. Manek, v.b. (2016). Mutual fund performance: a study on the effect of portfolio turnover on mutual fund performance in the Indian financial market. McDonald, John G., 1974, "Objectives and Performance of Mutual Funds, 1960†“1969," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 9(3), pages 311-333, June. Michael C. Jensen (1968), "The performance of Mutual Funds in the period 1945-1964," Journal of Finance, Volume 23(2), pp. 389-416. Prasanna, Chandra, Financial Management, Tata McGraw Hill, Delhi, (1995) Sanzhar, A. (2013). Mutual Fund Performance and Expense Ratios: A study of U . S . domestic diversified equity mutual funds. Unpublished, (August). See, Y.P., & Jusoh, R. (2010). FUND CHARACTERISTICS AND FUND PERFORMANCE: Evidence of Malaysian Mutual Funds. Vachalekar, N.M. & Prof Gauri Prabhu (2000), “Perception of Indian Investor towards investment in Mutual Funds with special reference to MIP Funds”, IOSR Journal of Economics and Finance, pp. 66-74 William F. Sharpe (1966), “Mutual Fund Performance”, Journal of Business, 39, No.1, pp.119-138. Wu, S.-C. (2014). Interaction between Mutual Fund Performance and Portfolio Turnover. Journal of Emerging Issues in Economics, Finance and Banking, 3(4), 1125–1140.