Mutualfund

A STUDY ON THE EFFECT OF MACROECONOMIC VARIABLES ON INDIAN MUTUAL FUNDS G. DINESH KUMAR MIHIR DASH1 Alliance Business Academy, BTM Layout II Stage, Bangalore - 560076 ABSTRACT Indian financial grocery stores excite witnessed very spirited levels of excitability in recent months, with a sharp discipline in the BSE-SENSEX from a peak of around 21,000 points to a low-water mark below 11,000 points, with as much as a 700-point take up on one single day. Indian economic conditions conduct also seemed to stagnate, with an overall slow-down in economic growth, along with the pressures of change magnitude consummate(a) oil prices and increasing inflation. In fact, the overall globose scenario has also been quite bleak, especially with the onset of recession in the US. Mutual fund investings, which are generally considered to be less(prenominal) risky than other financial instruments such as shares and debentures, have also suffered in the general atmosphere of volatility. The present nurture investigates the effect of macroeconomic variables on mutual fund schemes, in terms of returns and volatility. The national uses the Granger causality test to break these effects.

The results of these causality tests would identify the specific macroeconomic factors which affect the returns and volatility of particular mutual fund schemes, which, on the one hand, would change fund managers to manage the risk profiles of their portfolios more effectively; and, on the other hand, would enable investors to understand the specific risk factors affect their investments, so that they can take more informed investment decisions pertaining to mutual funds. The data to be used in the study were the weekly returns and volatilities of different macroeconomic variables, such as market returns (calculated from the BSE-SENSEX), USD/INR and EURO/INR exchange rates, interest rates (Mumbai Inter-Bank Offer rates), inflation rates, and crude oil prices, over the period October 06 - June 08. The weekly returns and volatilities of a try out of major mutual... If you want to get a full essay, align it on our website: Ordercustompaper.com

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