IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Who Drives Whom? Mutual Funds VS Stock Market

Listed author(s):
  • Zahid Irshad Younas
  • Wasif Siddiqi

In 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.

If 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.

File URL:
Download Restriction: Only to subscribers

File URL:
Download Restriction: Not freely downloadable

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Research Centre for Social Sciences,Mumbai, India in its journal Journal of Global Economy.

Volume (Year): 7 (2011)
Issue (Month): 4 (December)
Pages: 268-274

in new window

Handle: RePEc:jge:journl:743
Contact details of provider: Web page:

Order Information: Email:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:jge:journl:743. See general 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 you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.