IDEAS home Printed from
   My bibliography  Save this article

Who Drives Whom? Mutual Funds VS Stock Market


  • 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.

Suggested Citation

  • Zahid Irshad Younas & Wasif Siddiqi, 2011. "Who Drives Whom? Mutual Funds VS Stock Market," Journal of Global Economy, Research Centre for Social Sciences,Mumbai, India, vol. 7(4), pages 268-274, December.
  • Handle: RePEc:jge:journl:743

    Download full text from publisher

    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 search for a different version of it.

    More about this item


    Stock Market; NAV; Granger Causality; Mutual Funds;

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.