Khoo, Yee Chien and Chang, Ting Xuan and Hooi, Yee Pheng and Ng, Kah Hei and Soo, Sheng Mei (2020) Effect of macroeconomic factors on selective mutual fund performance in Malaysia. Final Year Project, UTAR.
Abstract
The purpose of the study is to analyze and understand the factors that influence the mutual funds’ performance in Malaysia and allows stakeholders to have a better understanding on the factors affecting their performance. The 10 underperforming open-end funds in Malaysia from year 2009 to 2018 is examined. Mutual fund has played an important role in Malaysian economy, there is a risk that the investor will lose their money if the mutual funds they have invested are not performing and highly correlated with macroeconomic factors. Therefore, the relationship of between interest rate, exchange rate, inflation rate, gross domestic product, money supply and performance of selective mutual fund performance in Malaysia will be examined. Panel regression is applied for this research and the Pool Ordinary Least Square had been conducted in this research. To execute the statistics results were Jarque-Bera test, multicollinearity, heteroskedasticity, autocorrelation, as well as hypothesis testing. The result found out there are significant relationship between exchange rate, inflation rate, gross domestic product and money supply with selective mutual fund performance and interest rate is the only independent variables has insignificant relationship with selective mutual funds’ performance in Malaysia. This research was provided the benefit to the society such as financial investors, investment advisor and financial professional, policy maker and financial market regulator as well as corporate.
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