Open AccessThe Impact of Macroeconomic Variables on Mutual Funds Performance in Ghana
Author(s) -
Cai Li,
Rosemond Atampokah,
Helena Akolpoka,
Priscilla Avonie,
Baku R. Kwame
Publication year - 2021
Publication title -
international journal of scientific research in science, engineering and technology
Language(s) - English
Resource type - Journals
eISSN - 2395-1990
pISSN - 2394-4099
DOI - 10.32628/ijsrset218213
Subject(s) - mutual fund , closed end fund , fund of funds , open end fund , economics , portfolio , investment fund , globe , finance , income fund , investment (military) , target date fund , foreign direct investment , business , financial system , institutional investor , macroeconomics , corporate governance , market liquidity , medicine , politics , political science , law , ophthalmology
Development across the globe has been an agenda many citizens of the world champion irrespective of the area, sector or discipline within which it is being advocated. Politically, socially, and in the world of economics, mutual fund has gained significance within country’s economic environment. The phenomenal growth in the financial market of mutual funds can be attributed to the increase in the various financial schemes available, improvement in fund mobilization, as well as the growth of investments in the country. We examined the impact of macroeconomic variables on mutual fund performance of all mutual fund companies in Ghana over the period of 2008 to 2016. We performed correlation analysis, hence examined the co-movement of the returns from the selected funds with the key macroeconomic variables. We find macroeconomics variables positively affect the returns of funds. The effect comes by the amount of money available for investments. We further find exchange rate as the strongest macroeconomic variable affects the performance of mutual funds in Ghana. We established that Ghana receives a significant amount of foreign portfolio investment (FPI), where investors in other countries bring in their money to make investment on our financial markets. Our results provide evidence for fund managers on approach in dealing with macroeconomic conditions and its volatilities.