Who Drives Whom? Mutual Funds VS Stock Market
AbstractIn this study we want to investigate the implication of stock market performance on mutual funds and vice versa. Purpose of the study was also to observe whether variation in NAV of mutual funds “Causes” variation in indices and vice versa. In order to observe this Cause and variation relationship study used the daily data on NAV of five open end mutual funds and KSE 100 indices for the period 2006 to 2010. The results obtained at the end shows there is unidirectional causality, bidirectional causality and causality independent to direction. “Everything causes Everything” is the thought of one school, while other school of thought is contrary to this belief. A couple of years ago Karachi stock market was tumbling and few corrections caused variation in mutual funds NAV. Hence other motive of the study was to observe whether historical performance of stock market and mutual funds contains useful information to predict the current NAV and current stock market performance. The results of study revealed the fact though stock market and mutual funds both affect the performance of each other but there may be some other factors which are also responsible for the performance of stock market and mutual funds.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Research Centre for Social Sciences,Mumbai, India in its journal Journal of Global Economy.
Volume (Year): 7 (2011)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.rcssindia.org
Find related papers by JEL classification:
- F01 - International Economics - - General - - - Global Outlook
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dr J K Sachdeva).
If references are entirely missing, you can add them using this form.