Impact of Macroeconomic Variables on the Performance of Mutual Funds: A Selective Study

Journal of Economic Policy & Research October 2019-March 2020, Vol.15 No.1, SSN 0975-8577

13 Pages Posted: 10 Nov 2020

See all articles by CMA(Dr.) Ashok Panigrahi

CMA(Dr.) Ashok Panigrahi

SVKM's Narsee Monjee Institute of Management Studies (NMIMS)

Pradhum Karwa

NMIMS University

Pushkin Joshi

NMIMS University

Date Written: July 16, 2020

Abstract


Over the period, investment in mutual funds has played an important role in the financial market and its popularity has increased at a very fast rate. India has seen phenomenal growth in both the number and size of diversified equity mutual funds in recent years. The market associated with mutual funds is always subjected to market risk. In such circumstances, it is very hard for the investor to maintain his investment portfolio. Normally the performance of an equity-diversified mutual fund depends upon the stock market performance. In India, the performance of mutual funds has been volatile because of several macro-economic factors. The purpose of this study is to examine the impact of economic events on the risk-adjusted returns/performance of mutual funds in India. The study sought to establish the effect of macroeconomic variables on the financial performance of selected mutual funds in India. For the calculation of impact, researcher has selected four equity mutual funds comprising of Aditya Birla Sun Life Equity Fund, Axis Long Term Equity Fund, ICICI Prudential Long Term Equity Fund and HDFC Equity Fund. The research concludes that the influence of macroeconomic variables is about 52% on the performance of Mutual Funds.

Keywords: AUM, Exchange Rate, Inflation Rate, Interest Rate, Mutual Fund, NAV, Performance

Suggested Citation

Panigrahi, Ashok and Karwa, Pradhum and Joshi, Pushkin, Impact of Macroeconomic Variables on the Performance of Mutual Funds: A Selective Study (July 16, 2020). Journal of Economic Policy & Research October 2019-March 2020, Vol.15 No.1, SSN 0975-8577, Available at SSRN: https://ssrn.com/abstract=3653076

Ashok Panigrahi (Contact Author)

SVKM's Narsee Monjee Institute of Management Studies (NMIMS) ( email )

Narsee Monjee Institute of Management Studies
Mukesh Patel Technology Park
Shirpur, MS 425405
India
8888810975 (Phone)

HOME PAGE: http://nmims.irins.org/profile/149882

Pradhum Karwa

NMIMS University ( email )

Mumbai
India

Pushkin Joshi

NMIMS University ( email )

Mumbai
India

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