Determinants of mutual fund growth in pakistan

We ask whether the growth of funds is influences by the management fee, family proportion and the expense ratio or not. How much these variables influenced the growth of funds. We further check out the relation of the family assets and the return on the funds with the performance of the funds. Investors are paying the charges to control the funds and for the growth of the funds in the shape of management fee and the administrative charges.

Determinants of mutual fund growth in pakistan

We ask whether the growth of funds is influences by the management fee, family proportion and the expense ratio or not. How much these variables influenced the growth of funds. We further check out the relation of the family assets and the return on the funds with the performance of the funds.

Investors are paying the charges to control the funds and for the growth of the funds in the shape of management fee and the administrative charges. We study the behavior and the output of the funds from the duration of We selected the funds which are listed in KSE.

The funds are selected which are in the family proportions because of the nature of regression model which is used for the calculation of the effect of determinants on the growth of the funds.

We use two models for the interpretation of the data. These are fixed effect model and cross section model. Through these models we elaborate the effects of different factors on the growth of these funds.

We focus on the management fee for checking the efficiency of the funds management. Basically there are many factors which can affects on the growth of the mutual fund. In these determinants of the mutual funds which can affect the growth of the mutual fund we are focusing on the management fee, the main focus is on the charging of the management fee and its impact on the growth.

Whether it is beneficial for the growth or not? Along with this we are determining some other major determinants of which can influence on the growth of these funds in Pakistan. Compensation to managers is primarily in the form of a Management fee.

Determinants of mutual fund growth in pakistan

With few exceptions, Management fees are charged as a percentage of the assets under management rather than on the basis of performance. It is therefore in the interest of management to grow the total assets in the fund and in the associated fund family.

One tool that managers may use to grow funds is the Management fee. This paper studies whether or not the charging of a Management fee support the investors by growing the worth of mutual funds family along with that of some other determinants.

Next we checked that the charging of Management fee leads to greater cash inflow for the funds which charge them.

Determinants of mutual fund growth in pakistan

We focus on various mutual funds existing in the Karachi Stock Exchange and listed there, in order to control for the variety of commission payment schemes associated with management fee charging funds that are now available to shareholders and are in the group of families charging Management fee.

Academic opinion on mutual fund fees is generally critical. Bogle, points out that the average cost of owning mutual funds has risen over percent in the last sixty years. Freeman and Brown contend mutual fund advisory fees alone are excessively high.

In their view the mutual fund industry is dominated by conflicts of interest where the mutual fund boards fail to negotiate arms-length management contracts with asset managers.

In their view asset managers are over compensated for the services that they provide. Similarly Ang, Chen and Lin argue that the primary benefit that managers can provide to the shareholders is the reduction of expenses.

The reason is that management has more control over expenses than over any other aspect of the return to the shareholders.Comparison between Islamic and Conventional Mutual Funds in Pakistan analyze small cap growth stock sector of mutual fund Main determinants of mutual fund.

INTRODUCTION

Role of inflation and factors affecting the inflation in current scenario of Pakistan (Determinants of Inflation) Determinants of Mutual Fund growth in. Nazir barnweddingvt.com () assessed determinants of mutual fund growth focusing on equity funds in Pakistan.

Analysis of Thai mutual fund industry and competitive situation. In these determinants of the mutual funds which can affect the growth of the mutual fund we are focusing on the management fee, the main focus is on the charging of .

This study is actually about the mutual fund growth and the determinants which are influencing on the growth of these funds. We ask whether the growth of funds is influences by the management fee, family proportion and the expense ratio or not.

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