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Effect of Fund Managers' Characteristics on Mutual Funds Performance and Fee in Emerging Market of Paksitan

Author

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  • Arif, Imtiaz
  • Jawaid, Tehseen

Abstract

This study investigates the relationship between mutual fund performance and fund manager’s characteristics by using quarterly data of 14 open end equity mutual funds during 2005(8) to 2008(8). Data were collected from the database of Mutual Funds Association of Pakistan (MUFAP) keeping age, management fee, fund size, team size, and experience as variables. Through the regression analysis, the results indicate that management fee has positive & significant impact on risk and negative & significant impact on return. In addition, certification has also significant & positive impact on return whereas the team management and experience have no effect on the management fee of the EMF managers. It is suggested that mutual funds with high management fee should be avoided and investor should prefer those mutual funds which are administered by professionally certified managers.

Suggested Citation

  • Arif, Imtiaz & Jawaid, Tehseen, 2011. "Effect of Fund Managers' Characteristics on Mutual Funds Performance and Fee in Emerging Market of Paksitan," MPRA Paper 58936, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:58936
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    References listed on IDEAS

    as
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    2. Naim Sipra, 2006. "Mutual Fund Performance in Pakistan, 1995-2004," Finance Working Papers 22281, East Asian Bureau of Economic Research.
    3. Golec, Joseph H., 1996. "The effects of mutual fund managers' characteristics on their portfolio performance, risk and fees," Financial Services Review, Elsevier, vol. 5(2), pages 133-147.
    4. Daniel, Kent, et al, 1997. "Measuring Mutual Fund Performance with Characteristic-Based Benchmarks," Journal of Finance, American Finance Association, vol. 52(3), pages 1035-1058, July.
    5. S. M. Aamir Shah & Syed Tahir Hijazi, 2005. "Performance Evaluation of Mutual Funds in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(4), pages 863-876.
    6. Prather, Larry J. & Middleton, Karen L., 2002. "Are N+1 heads better than one?: The case of mutual fund managers," Journal of Economic Behavior & Organization, Elsevier, vol. 47(1), pages 103-120, January.
    7. Berkowitz, Michael K. & Kotowitz, Yehuda, 2002. "Managerial quality and the structure of management expenses in the US mutual fund industry," International Review of Economics & Finance, Elsevier, vol. 11(3), pages 315-330.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Equity mutual fund; risk; return; management fee;
    All these keywords.

    JEL classification:

    • G0 - Financial Economics - - General
    • G00 - Financial Economics - - General - - - General
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles

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