This document summarizes a study that investigated the effects of fund size on the performance of unit trust funds in Kenya. The study used secondary data from the audited financial statements of 16 unit trust firms in Kenya from 2005 to 2017. The study found that fund size has a significant positive effect on performance across all funds. Larger funds benefit from economies of scale which increases performance. The study concluded that an increase in fund size leads to higher performance and recommends that the Capital Markets Authority monitors fund performance closely and develops merger policies to encourage small funds to merge in order to benefit from economies of scale.
Evaluating the Effect of Financial Performance on Dividend Payout of Deposit ...ijtsrd
This document evaluates the effect of financial performance measures on dividend payout of deposit money banks in Nigeria from 2011 to 2020. It examines the impact of earnings per share, return on assets, return on equity, and profit for the year on dividend per share. Secondary data was obtained from annual reports of selected banks and analyzed using correlation analysis and multiple regression. The findings revealed that earnings per share and return on assets had a significant positive effect on dividend per share, while return on equity had an insignificant positive effect and profit for the year had a significant negative effect. Therefore, financial performance positively impacts dividend payout, except for profit which had a negative impact. The study recommends banks improve earnings per share, return on assets, and return on
An Empirical Study On The Determinants Of An Investor S Decision In Unit Trus...Sara Alvarez
This document summarizes a research study on the factors that influence an investor's decision to invest in unit trusts in Malaysia. The study hypothesized that financial status, risk tolerance, expected investment returns, and access to investment information would significantly impact investment decisions. A survey of 202 investors found that financial status, risk tolerance, and sources of information did significantly influence investment behavior, but expected returns did not have a clear relationship. The findings help financial institutions understand investor preferences to better target customers and promote unit trust investments.
The purpose of this research was to empirically investigate the effect of capital structure on financial sustainability
of deposit-taking micro finance institutions (DTMs) in Kenya. The specific objectives were to determine the impact
of debt on the financial sustainability of DTMs in Kenya, to assess the influence of retained earnings on the financial
sustainability of DTMs in Kenya, to examine the effect of ordinary share capital on the financial sustainability of
MFIs in Kenya, and to investigate the impact of preferred share capital on the financial sustainability of DTMs in
Kenya. The target population of the study was all the 13 DTMs in Kenya registered with the Central Bank of Kenya.
Secondary data was collected on all the DTMs financial data from the Central Bank of Kenya reports. Data was
analyzed using multiple regression model using SPSS and R as the data analysis tool. Based on the findings 76.9%
of the DTMs did not earn enough revenue to cover the actual financing direct costs, which include the total operating
costs, loan loss provisions and the financing costs but excluding the cost of capital. The analysis of variance
(ANOVA) table indicated that the predictor variables influenced the predictor variable significantly at 5%
significance level. Among the four variables; debt and retained earnings were statistically significant variable at 5%
significance level with 1.265 and 1.630 coefficient respectfully. Whereby the financial sustainability change by
1.265 and 1.630 for every unit change of debt or retained earnings respectfully. Therefore, for the deposit-taking
microfinance institutions to remain afloat in the lending business, they should utilize any borrowing opportunity,
plough back profits to the business, and low proportion of preferred share capital. Deposit-taking microfinance
institutions should avoid usage ordinary share capital as it negatively affected financial sustainability
All papers submitted to IJMRR are subject to a double-blind peer review process. The journal publishes original works with practical significance and academic value. Authors are invited to submit theoretical or empirical papers in all aspects of management, including strategy, human resources, marketing, operations, technology, information systems, finance and accounting, business economics, and public sector management. IJMRR is an international forum for research that advances the theory and practice of management.
The primary objective of this paper is to determine the relationship between the effects of capital structure and the performance of Microfinance Institutions in Oman. In this research, a questionnaire was used to obtain the results and the qualitative study where the qualitative data was collected through primary date. The target group to answer this questionnaire was from the owners of Microfinance in Oman, and 10 answers were obtained. The results found there is a positive relationship between Capital Structure and Performance of Microfinance. The capital
structure is important in improving the performance of Microfinance and maintaining its proper management. It also leads to improved performance, which results in an increase in profit, the correct management of expenses, and a reduction in losses. Empirical results indicate that effective use and creation of social capital is vital to improving the effects of Microfinance, and Owners of Microfinance should focus more on harmonious social relationships and
deliberately building social capital. Also, provided Microfinance Owners to work on a plan to reduce expenses and increase profitability, as well as recognize the correct management of capital structure. As well as understanding the
structure of capital and the positive impact on the performance of Microfinance.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
This document discusses private equity investments in Kenya. It provides background on private equity and discusses trends in various regions. Some key points:
- Private equity is an alternative form of financing for companies at various growth stages, providing equity capital over the medium or long term. It can take the form of venture capital, leveraged buyouts, or mezzanine capital.
- Private equity deals and use of leverage have increased sharply in recent years. However, private equity activity declined in the US, Europe, and Africa in 2012 from previous years due to factors like the 2008 financial crisis.
- In Kenya, the study aims to establish the extent of private equity adoption, common forms of private equity, and exit strategies
This document discusses private equity investments in Kenya. It provides background on private equity and discusses trends in various regions. The objectives of the study discussed are to establish the extent of private equity adoption in Kenya, identify common forms of private equity utilized, and determine typical exit strategies. Private equity can involve venture capital, leveraged buyouts, or mezzanine financing. Exits allow recycling of capital into new opportunities. The document provides context on private equity globally and in developing markets like Africa to frame the goals of the study.
Evaluating the Effect of Financial Performance on Dividend Payout of Deposit ...ijtsrd
This document evaluates the effect of financial performance measures on dividend payout of deposit money banks in Nigeria from 2011 to 2020. It examines the impact of earnings per share, return on assets, return on equity, and profit for the year on dividend per share. Secondary data was obtained from annual reports of selected banks and analyzed using correlation analysis and multiple regression. The findings revealed that earnings per share and return on assets had a significant positive effect on dividend per share, while return on equity had an insignificant positive effect and profit for the year had a significant negative effect. Therefore, financial performance positively impacts dividend payout, except for profit which had a negative impact. The study recommends banks improve earnings per share, return on assets, and return on
An Empirical Study On The Determinants Of An Investor S Decision In Unit Trus...Sara Alvarez
This document summarizes a research study on the factors that influence an investor's decision to invest in unit trusts in Malaysia. The study hypothesized that financial status, risk tolerance, expected investment returns, and access to investment information would significantly impact investment decisions. A survey of 202 investors found that financial status, risk tolerance, and sources of information did significantly influence investment behavior, but expected returns did not have a clear relationship. The findings help financial institutions understand investor preferences to better target customers and promote unit trust investments.
The purpose of this research was to empirically investigate the effect of capital structure on financial sustainability
of deposit-taking micro finance institutions (DTMs) in Kenya. The specific objectives were to determine the impact
of debt on the financial sustainability of DTMs in Kenya, to assess the influence of retained earnings on the financial
sustainability of DTMs in Kenya, to examine the effect of ordinary share capital on the financial sustainability of
MFIs in Kenya, and to investigate the impact of preferred share capital on the financial sustainability of DTMs in
Kenya. The target population of the study was all the 13 DTMs in Kenya registered with the Central Bank of Kenya.
Secondary data was collected on all the DTMs financial data from the Central Bank of Kenya reports. Data was
analyzed using multiple regression model using SPSS and R as the data analysis tool. Based on the findings 76.9%
of the DTMs did not earn enough revenue to cover the actual financing direct costs, which include the total operating
costs, loan loss provisions and the financing costs but excluding the cost of capital. The analysis of variance
(ANOVA) table indicated that the predictor variables influenced the predictor variable significantly at 5%
significance level. Among the four variables; debt and retained earnings were statistically significant variable at 5%
significance level with 1.265 and 1.630 coefficient respectfully. Whereby the financial sustainability change by
1.265 and 1.630 for every unit change of debt or retained earnings respectfully. Therefore, for the deposit-taking
microfinance institutions to remain afloat in the lending business, they should utilize any borrowing opportunity,
plough back profits to the business, and low proportion of preferred share capital. Deposit-taking microfinance
institutions should avoid usage ordinary share capital as it negatively affected financial sustainability
All papers submitted to IJMRR are subject to a double-blind peer review process. The journal publishes original works with practical significance and academic value. Authors are invited to submit theoretical or empirical papers in all aspects of management, including strategy, human resources, marketing, operations, technology, information systems, finance and accounting, business economics, and public sector management. IJMRR is an international forum for research that advances the theory and practice of management.
The primary objective of this paper is to determine the relationship between the effects of capital structure and the performance of Microfinance Institutions in Oman. In this research, a questionnaire was used to obtain the results and the qualitative study where the qualitative data was collected through primary date. The target group to answer this questionnaire was from the owners of Microfinance in Oman, and 10 answers were obtained. The results found there is a positive relationship between Capital Structure and Performance of Microfinance. The capital
structure is important in improving the performance of Microfinance and maintaining its proper management. It also leads to improved performance, which results in an increase in profit, the correct management of expenses, and a reduction in losses. Empirical results indicate that effective use and creation of social capital is vital to improving the effects of Microfinance, and Owners of Microfinance should focus more on harmonious social relationships and
deliberately building social capital. Also, provided Microfinance Owners to work on a plan to reduce expenses and increase profitability, as well as recognize the correct management of capital structure. As well as understanding the
structure of capital and the positive impact on the performance of Microfinance.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
This document discusses private equity investments in Kenya. It provides background on private equity and discusses trends in various regions. Some key points:
- Private equity is an alternative form of financing for companies at various growth stages, providing equity capital over the medium or long term. It can take the form of venture capital, leveraged buyouts, or mezzanine capital.
- Private equity deals and use of leverage have increased sharply in recent years. However, private equity activity declined in the US, Europe, and Africa in 2012 from previous years due to factors like the 2008 financial crisis.
- In Kenya, the study aims to establish the extent of private equity adoption, common forms of private equity, and exit strategies
This document discusses private equity investments in Kenya. It provides background on private equity and discusses trends in various regions. The objectives of the study discussed are to establish the extent of private equity adoption in Kenya, identify common forms of private equity utilized, and determine typical exit strategies. Private equity can involve venture capital, leveraged buyouts, or mezzanine financing. Exits allow recycling of capital into new opportunities. The document provides context on private equity globally and in developing markets like Africa to frame the goals of the study.
Mutual fund is the better investment planProjects Kart
Mutual funds provide several benefits over other investment options such as banks deposits and stocks. They allow small investors to access a diversified portfolio of securities for a low cost. Mutual funds provide professional management, risk reduction through diversification, liquidity, and convenience. However, investors have little control over costs and cannot create tailored portfolios. The study aims to help new investors understand how to evaluate the risk and return of mutual funds and select appropriate schemes given the current economic environment of falling interest rates and volatile stock markets.
Capital structure and market values of companiesAlexander Decker
1) The document discusses the relationship between capital structure and market values of companies. It notes that an optimal capital structure is important for maximizing shareholder wealth and market value.
2) The author reviews theories on how capital structure can impact firm value. While the Modigliani-Miller theory suggests capital structure is irrelevant, other research has found relationships between capital structure, growth opportunities, and firm value.
3) Debt financing can increase firm value through tax benefits and lower costs than equity, but it also increases financial risk which may offset these benefits. An optimal capital structure balances these costs and benefits.
Fiduciary or paper money is issued by the Central Bank on the basis of
computation of estimated demand for cash. Monetary policy guides the Central
Bank’s supply of money in order to achieve the objectives of price stability (or low
inflation rate), full employment, and growth in aggregate income.
A Study on Investors Perception towards Mutual Fund Investments (With Special...Dr. Amarjeet Singh
This examination on Investors acknowledgment
towards and late improvement and headway of Mutual Fund
premiums in Alwar city goes under the board an area of
organization publicizing. In the wide thought of organization
publicizing it exclusively centers around the exhibiting of cash
related organization specifically basic resources. Well ordered
Indian budgetary market is getting the chance to be engaged
and the supply of various fiscal instruments ought to be in
parity to the premium perspectives of the monetary
authorities. The prime drive of any hypothesis is to get most
extraordinary returned with a base danger and normal
resources allow to the budgetary masters. The examination
gives an information into the sorts of risks which exist in a
mutual save plan. The data was assembled from shared save
budgetary authorities similarly as non basic store examiners of
this industry. The investigation bases on the association
between theory decision and factors like liquidity, cash related
care, and demography. It was found commonly safe resources
and liquidity of store plot are having influence on the
budgetary authority's acumen for placing assets into the
mutual save. With the more broad thought of the distinctive
components of organization publicizing, thing care, mark
tendencies, and money related authority's satisfaction are the
specific regions of the examination. The other displaying limits
like thing progression publicize division, channels of
exhibiting, thing life cycle, scale headway procedures and their
impact of Marketing are completely disposed of from the audit
of this examination. So likewise the availability of substitute
aftereffect of normal hold units and their impact on this
organization thing it also rejected in the examination. In
reality, even in the normal store monetary authorities lead also
the researcher concentrate only the urban theorists and their
anxiety for this examination work. The rustic speculator's
perspectives are totally barred from the investigation.
Volume of Deposits, A determinant of Total Long-term Loans Advanced by Commer...iosrjce
Commercial banks have exponentially increased their total loans advanced over the period 2002-
2013. However commercial banks in Kenya have shown varying long term lending behavior. The main objective
of this study was to establish the effect of determinants of long term lending in the Kenyan banking industry, a
case of Bungoma County. This study was guided by the following specific objective; to determine the effect of
volume of deposit on total loan advanced, of selected commercial banks in Kenya. The target population
comprised 13 commercial banks in Bungoma County with a sample size of 52 respondents. From the findings,
for every unit increase in volume of deposits, a 10.9%, unit increase in total loans advanced is predicted. The
model hypothesizes that there is functional relationship between the dependent variable and the independent
variable. The study then recommends that commercial banks should focus on mobilizing more deposits as this
will enhance their lending performance.
Study on Mutual Fund is the Better Investment PlanProjects Kart
Mutual funds have become a hot favorite of millions of people all over the world. The driving force of mutual fund is the ‘safety of the principal’ guaranteed, plus the added advantage of capital appreciation together with the income earned in the form of interest or dividend. People prefer Mutual Funds to bank deposits, life insurance and even bond because with a little money, they can get into the investment game. One can own string blue chips like ITC, TISCO, Reliance etc., through mutual funds. Thus, mutual funds act as a gateway to enter into big companies hitherto inaccessible to an ordinary investor with his small investment.
The journal publishes original works with practical significance and academic value. All papers submitted to IJMRR are subject to a double-blind peer review process. Authors are invited to submit theoretical or empirical papers in all aspects of management, including strategy, human resources, marketing, operations, technology, information systems, finance and accounting, business economics, and public sector management.
Following three very challenging years in the local asset management industry, investors and investment professionals have been forced to reconsider the effectiveness of their investment strategies for living annuities.
The document provides an overview of various investment avenues available in the current financial year. It discusses key concepts like inflation, risk profiling of investors, and strategies for robust investment and financial planning. The objectives are to understand different asset classes and products, and elicit an in-depth coverage of major investment avenues and their performance over the past couple of years to arrive at an optimal asset allocation keeping in mind risk appetite and investment goals. Key investment avenues discussed include equity, debt, mutual funds, real estate, commodities, and more.
The document provides an introduction to hedge funds, explaining that they are investment tools used by institutions like pensions and universities to manage risk and diversify investments to help meet financial goals. It describes how hedge funds work, including typical fee structures and regulations around who can invest in them. Various hedge fund strategies are outlined, and data is presented showing that hedge funds have historically achieved higher risk-adjusted returns than other asset classes.
Performence of mutual fund by. karan gujratiKaran Gujrati
This document is a dissertation project report submitted by Karan Gujrati to the Department of Business Administration under the guidance of Dr. Mayank Malviya. It discusses the performance of mutual funds in India. The acknowledgement section thanks various people who helped with the project. The declaration confirms this is Karan's original work. The table of contents outlines the various sections of the report which will cover topics like the history of mutual funds in India, types of mutual funds, research methodology used in the analysis, an overview and analysis of various fund types, findings and recommendations.
The document provides an overview of a study conducted on Religare Mutual Fund. It outlines the structure of the project report which includes chapters that focus on the introduction to equity and mutual funds, company profile, research methodology, data analysis, findings, conclusions and recommendations. Key information on types of mutual fund schemes such as open-ended, close-ended, growth, income, balanced and money market funds are also summarized. The advantages of equity capital and mutual funds are highlighted.
The document discusses various investment alternatives and the investment process. It begins by defining investment and differentiating investment from speculation. It then discusses factors that make investments important like retirement planning, taxation, and inflation. The document outlines popular investment avenues in India like shares, bonds, mutual funds, insurance policies, and real estate. It also describes the stages of the investment process as developing an investment policy, analyzing investments, valuing securities, and constructing an investment portfolio. Key features of investment programs discussed include safety, liquidity, income stability, and appreciation.
Financial Structure and the Financial Performance of Quoted Consumer Goods Fi...ijtsrd
The study investigated the effect of financial structure on the financial performance of quoted consumer goods firms in Nigeria. The study used profit after tax PAT to represented financial performance as the dependent variable while financial structure was disintegrated into Short Term Debt STD , Long Term Debt LTD , share capital SC and retained earnings RE as the independent variable. The data for the study were obtained from the Financial Statement and Annual Reports of the selected firms. The data set comprised fifty 50 observations comprising five year time series data spanning 2010 to 2019 from ten firms in the consumer goods sector. The panel regression technique based on Fixed and Random Effects were used for data analyses. The Hausman test showed that the Fixed Effect model is more suitable for the study. The findings revealed that STD and SC have significant positive effects on the PAT of consumer goods firms in Nigeria while LTD and RE were found to have positive but no significant effect on the PAT of consumer goods firms in Nigeria. The study conclude that b working capital management is an efficient tool for the consumer goods subsector in Nigeria. Among the contributions of the study is the use of all the four sources of funds and the use of profit after tax that tends to capture the overall effect of the various fund sources on the holistic profitability of the consumer goods firms. The recommendations included use of share capital for long term investment and working capital management for operations. Daniel, Prince Chinwendu | Dr. Joseph A. Nduka "Financial Structure and the Financial Performance of Quoted Consumer Goods Firms in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-1 , December 2020, URL: https://www.ijtsrd.com/papers/ijtsrd37967.pdf Paper URL : https://www.ijtsrd.com/management/accounting-and-finance/37967/financial-structure-and-the-financial-performance-of-quoted-consumer-goods-firms-in-nigeria/daniel-prince-chinwendu
The document discusses the role of financial systems and stock markets in economic development. It provides an overview of Pakistan's financial system, including the historical dominance of informal finance. While financial reforms in recent decades improved access to formal institutions, stock markets remain underdeveloped in Pakistan. The document analyzes constraints like low interest rates, weak regulation, and political instability that have limited stock market growth. It recommends further reforms like reducing corporate leverage, encouraging bond markets, and improving disclosure to strengthen Pakistan's financial system.
This document provides an introduction and overview of mutual funds in India. It discusses what mutual funds are, how they work by pooling investments from many individuals, and how they are professionally managed. It also outlines the future growth potential for mutual funds in India, as more investors shift assets away from traditional avenues to mutual funds. Overall asset bases are expected to grow 30-35% annually in coming years. The document also briefly discusses trends in the mutual fund industry in India, including increasing competition and performance-based growth.
This document appears to be a dissertation submitted by Sangeeta Pandey to Uttarakhand Graphic Era Hill University for a Bachelor of Commerce (Honors) degree. The dissertation is titled "Comparative Analysis of Banks and Mutual Fund Interest Rates" and was conducted under the supervision of Mr. Ramanuj Tewari. The dissertation includes an introduction to mutual funds and banks, objectives of the research, research methodology, interpretation of findings, limitations, conclusions, and references. It aims to evaluate and compare the performance and interest rates of mutual funds versus domestic bank term deposits.
Hedge funds originated as a vehicle to help diversify investment portfolios, manage risk and produce reliable returns over time. While hedge funds’ investor base has evolved over the years – from individuals to institutions such as pensions, universities and foundations – their core goals have not.
This presentation provides a brief overview of the investment approach hedge funds offer their partners.
It also illustrates the many ways hedge fund investments benefit communities and individuals.
Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.
- A mutual fund is a collection of stocks, bonds, and other securities that are owned by many investors. Investors own shares of the fund that represent their portion of the holdings.
- The document discusses the objectives of studying the performance of mutual funds during the financial crisis, including analyzing the impact on debt vs equity funds and changes in portfolio over one year.
- The methodology section outlines collecting primary data through surveys and secondary data from fund websites to analyze performance based on factors like NAV, AUM, risk measures, and returns over time.
Why Do I Need To Write My Essays Press Release PGina Brown
The document discusses how children in the 19th century often faced poverty and lived in urban slums. Progressive reformers focused on addressing the problems faced by these children. Their goals were to change perceptions of childhood and promote the proper treatment of children. Reformers advocated for better diets and hygiene for children to improve health outcomes and reduce infant mortality rates.
Top 100 Extended Essay Topics By Extended EssayGina Brown
This document provides instructions for seeking writing help from HelpWriting.net. It outlines a 5-step process: 1) Create an account, 2) Complete an order form with instructions and deadline, 3) Review writer bids and choose one, 4) Review the completed paper and authorize payment, 5) Request revisions until satisfied. It notes the site uses a bidding system and guarantees original, high-quality content or a full refund.
More Related Content
Similar to 8-15 Fund Size And Performance Of Unit Trust Funds In Kenya
Mutual fund is the better investment planProjects Kart
Mutual funds provide several benefits over other investment options such as banks deposits and stocks. They allow small investors to access a diversified portfolio of securities for a low cost. Mutual funds provide professional management, risk reduction through diversification, liquidity, and convenience. However, investors have little control over costs and cannot create tailored portfolios. The study aims to help new investors understand how to evaluate the risk and return of mutual funds and select appropriate schemes given the current economic environment of falling interest rates and volatile stock markets.
Capital structure and market values of companiesAlexander Decker
1) The document discusses the relationship between capital structure and market values of companies. It notes that an optimal capital structure is important for maximizing shareholder wealth and market value.
2) The author reviews theories on how capital structure can impact firm value. While the Modigliani-Miller theory suggests capital structure is irrelevant, other research has found relationships between capital structure, growth opportunities, and firm value.
3) Debt financing can increase firm value through tax benefits and lower costs than equity, but it also increases financial risk which may offset these benefits. An optimal capital structure balances these costs and benefits.
Fiduciary or paper money is issued by the Central Bank on the basis of
computation of estimated demand for cash. Monetary policy guides the Central
Bank’s supply of money in order to achieve the objectives of price stability (or low
inflation rate), full employment, and growth in aggregate income.
A Study on Investors Perception towards Mutual Fund Investments (With Special...Dr. Amarjeet Singh
This examination on Investors acknowledgment
towards and late improvement and headway of Mutual Fund
premiums in Alwar city goes under the board an area of
organization publicizing. In the wide thought of organization
publicizing it exclusively centers around the exhibiting of cash
related organization specifically basic resources. Well ordered
Indian budgetary market is getting the chance to be engaged
and the supply of various fiscal instruments ought to be in
parity to the premium perspectives of the monetary
authorities. The prime drive of any hypothesis is to get most
extraordinary returned with a base danger and normal
resources allow to the budgetary masters. The examination
gives an information into the sorts of risks which exist in a
mutual save plan. The data was assembled from shared save
budgetary authorities similarly as non basic store examiners of
this industry. The investigation bases on the association
between theory decision and factors like liquidity, cash related
care, and demography. It was found commonly safe resources
and liquidity of store plot are having influence on the
budgetary authority's acumen for placing assets into the
mutual save. With the more broad thought of the distinctive
components of organization publicizing, thing care, mark
tendencies, and money related authority's satisfaction are the
specific regions of the examination. The other displaying limits
like thing progression publicize division, channels of
exhibiting, thing life cycle, scale headway procedures and their
impact of Marketing are completely disposed of from the audit
of this examination. So likewise the availability of substitute
aftereffect of normal hold units and their impact on this
organization thing it also rejected in the examination. In
reality, even in the normal store monetary authorities lead also
the researcher concentrate only the urban theorists and their
anxiety for this examination work. The rustic speculator's
perspectives are totally barred from the investigation.
Volume of Deposits, A determinant of Total Long-term Loans Advanced by Commer...iosrjce
Commercial banks have exponentially increased their total loans advanced over the period 2002-
2013. However commercial banks in Kenya have shown varying long term lending behavior. The main objective
of this study was to establish the effect of determinants of long term lending in the Kenyan banking industry, a
case of Bungoma County. This study was guided by the following specific objective; to determine the effect of
volume of deposit on total loan advanced, of selected commercial banks in Kenya. The target population
comprised 13 commercial banks in Bungoma County with a sample size of 52 respondents. From the findings,
for every unit increase in volume of deposits, a 10.9%, unit increase in total loans advanced is predicted. The
model hypothesizes that there is functional relationship between the dependent variable and the independent
variable. The study then recommends that commercial banks should focus on mobilizing more deposits as this
will enhance their lending performance.
Study on Mutual Fund is the Better Investment PlanProjects Kart
Mutual funds have become a hot favorite of millions of people all over the world. The driving force of mutual fund is the ‘safety of the principal’ guaranteed, plus the added advantage of capital appreciation together with the income earned in the form of interest or dividend. People prefer Mutual Funds to bank deposits, life insurance and even bond because with a little money, they can get into the investment game. One can own string blue chips like ITC, TISCO, Reliance etc., through mutual funds. Thus, mutual funds act as a gateway to enter into big companies hitherto inaccessible to an ordinary investor with his small investment.
The journal publishes original works with practical significance and academic value. All papers submitted to IJMRR are subject to a double-blind peer review process. Authors are invited to submit theoretical or empirical papers in all aspects of management, including strategy, human resources, marketing, operations, technology, information systems, finance and accounting, business economics, and public sector management.
Following three very challenging years in the local asset management industry, investors and investment professionals have been forced to reconsider the effectiveness of their investment strategies for living annuities.
The document provides an overview of various investment avenues available in the current financial year. It discusses key concepts like inflation, risk profiling of investors, and strategies for robust investment and financial planning. The objectives are to understand different asset classes and products, and elicit an in-depth coverage of major investment avenues and their performance over the past couple of years to arrive at an optimal asset allocation keeping in mind risk appetite and investment goals. Key investment avenues discussed include equity, debt, mutual funds, real estate, commodities, and more.
The document provides an introduction to hedge funds, explaining that they are investment tools used by institutions like pensions and universities to manage risk and diversify investments to help meet financial goals. It describes how hedge funds work, including typical fee structures and regulations around who can invest in them. Various hedge fund strategies are outlined, and data is presented showing that hedge funds have historically achieved higher risk-adjusted returns than other asset classes.
Performence of mutual fund by. karan gujratiKaran Gujrati
This document is a dissertation project report submitted by Karan Gujrati to the Department of Business Administration under the guidance of Dr. Mayank Malviya. It discusses the performance of mutual funds in India. The acknowledgement section thanks various people who helped with the project. The declaration confirms this is Karan's original work. The table of contents outlines the various sections of the report which will cover topics like the history of mutual funds in India, types of mutual funds, research methodology used in the analysis, an overview and analysis of various fund types, findings and recommendations.
The document provides an overview of a study conducted on Religare Mutual Fund. It outlines the structure of the project report which includes chapters that focus on the introduction to equity and mutual funds, company profile, research methodology, data analysis, findings, conclusions and recommendations. Key information on types of mutual fund schemes such as open-ended, close-ended, growth, income, balanced and money market funds are also summarized. The advantages of equity capital and mutual funds are highlighted.
The document discusses various investment alternatives and the investment process. It begins by defining investment and differentiating investment from speculation. It then discusses factors that make investments important like retirement planning, taxation, and inflation. The document outlines popular investment avenues in India like shares, bonds, mutual funds, insurance policies, and real estate. It also describes the stages of the investment process as developing an investment policy, analyzing investments, valuing securities, and constructing an investment portfolio. Key features of investment programs discussed include safety, liquidity, income stability, and appreciation.
Financial Structure and the Financial Performance of Quoted Consumer Goods Fi...ijtsrd
The study investigated the effect of financial structure on the financial performance of quoted consumer goods firms in Nigeria. The study used profit after tax PAT to represented financial performance as the dependent variable while financial structure was disintegrated into Short Term Debt STD , Long Term Debt LTD , share capital SC and retained earnings RE as the independent variable. The data for the study were obtained from the Financial Statement and Annual Reports of the selected firms. The data set comprised fifty 50 observations comprising five year time series data spanning 2010 to 2019 from ten firms in the consumer goods sector. The panel regression technique based on Fixed and Random Effects were used for data analyses. The Hausman test showed that the Fixed Effect model is more suitable for the study. The findings revealed that STD and SC have significant positive effects on the PAT of consumer goods firms in Nigeria while LTD and RE were found to have positive but no significant effect on the PAT of consumer goods firms in Nigeria. The study conclude that b working capital management is an efficient tool for the consumer goods subsector in Nigeria. Among the contributions of the study is the use of all the four sources of funds and the use of profit after tax that tends to capture the overall effect of the various fund sources on the holistic profitability of the consumer goods firms. The recommendations included use of share capital for long term investment and working capital management for operations. Daniel, Prince Chinwendu | Dr. Joseph A. Nduka "Financial Structure and the Financial Performance of Quoted Consumer Goods Firms in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-1 , December 2020, URL: https://www.ijtsrd.com/papers/ijtsrd37967.pdf Paper URL : https://www.ijtsrd.com/management/accounting-and-finance/37967/financial-structure-and-the-financial-performance-of-quoted-consumer-goods-firms-in-nigeria/daniel-prince-chinwendu
The document discusses the role of financial systems and stock markets in economic development. It provides an overview of Pakistan's financial system, including the historical dominance of informal finance. While financial reforms in recent decades improved access to formal institutions, stock markets remain underdeveloped in Pakistan. The document analyzes constraints like low interest rates, weak regulation, and political instability that have limited stock market growth. It recommends further reforms like reducing corporate leverage, encouraging bond markets, and improving disclosure to strengthen Pakistan's financial system.
This document provides an introduction and overview of mutual funds in India. It discusses what mutual funds are, how they work by pooling investments from many individuals, and how they are professionally managed. It also outlines the future growth potential for mutual funds in India, as more investors shift assets away from traditional avenues to mutual funds. Overall asset bases are expected to grow 30-35% annually in coming years. The document also briefly discusses trends in the mutual fund industry in India, including increasing competition and performance-based growth.
This document appears to be a dissertation submitted by Sangeeta Pandey to Uttarakhand Graphic Era Hill University for a Bachelor of Commerce (Honors) degree. The dissertation is titled "Comparative Analysis of Banks and Mutual Fund Interest Rates" and was conducted under the supervision of Mr. Ramanuj Tewari. The dissertation includes an introduction to mutual funds and banks, objectives of the research, research methodology, interpretation of findings, limitations, conclusions, and references. It aims to evaluate and compare the performance and interest rates of mutual funds versus domestic bank term deposits.
Hedge funds originated as a vehicle to help diversify investment portfolios, manage risk and produce reliable returns over time. While hedge funds’ investor base has evolved over the years – from individuals to institutions such as pensions, universities and foundations – their core goals have not.
This presentation provides a brief overview of the investment approach hedge funds offer their partners.
It also illustrates the many ways hedge fund investments benefit communities and individuals.
Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.
- A mutual fund is a collection of stocks, bonds, and other securities that are owned by many investors. Investors own shares of the fund that represent their portion of the holdings.
- The document discusses the objectives of studying the performance of mutual funds during the financial crisis, including analyzing the impact on debt vs equity funds and changes in portfolio over one year.
- The methodology section outlines collecting primary data through surveys and secondary data from fund websites to analyze performance based on factors like NAV, AUM, risk measures, and returns over time.
Similar to 8-15 Fund Size And Performance Of Unit Trust Funds In Kenya (20)
Why Do I Need To Write My Essays Press Release PGina Brown
The document discusses how children in the 19th century often faced poverty and lived in urban slums. Progressive reformers focused on addressing the problems faced by these children. Their goals were to change perceptions of childhood and promote the proper treatment of children. Reformers advocated for better diets and hygiene for children to improve health outcomes and reduce infant mortality rates.
Top 100 Extended Essay Topics By Extended EssayGina Brown
This document provides instructions for seeking writing help from HelpWriting.net. It outlines a 5-step process: 1) Create an account, 2) Complete an order form with instructions and deadline, 3) Review writer bids and choose one, 4) Review the completed paper and authorize payment, 5) Request revisions until satisfied. It notes the site uses a bidding system and guarantees original, high-quality content or a full refund.
College Essay Career Goals - Educational And CareerGina Brown
1. The document discusses Kant's ethical theory of deontology, which focuses on duties and obligations rather than consequences of actions.
2. Kant's Categorical Imperative states that people should only act in a way that they can universalize and apply to everyone. This provides a test to determine if an action is morally right.
3. Lying to get out of a problematic situation is used as an example - if lying could become a universal rule without contradiction, then it would be morally permissible under Kant's theory. However, universalizing the rule of lying generally leads to contradictions.
The Value Of Education - Assignment PointGina Brown
The document discusses conducting a feasibility study to analyze alternative solutions to a problem and recommend the best option. A feasibility study examines market issues, technical and organizational requirements, and financial overview to determine if a new system can solve the problem more efficiently than the current one. The results of the feasibility study are then used to inform the decision on whether to implement the new system.
Thematic Photo Essay Examples Sitedoct.OrgGina Brown
The document discusses how language can influence the process of obtaining informed consent from patients or research participants. Issues of comprehension, fluency, and perceived power dynamics are important to consider. The person obtaining consent must be able to clearly explain the study in a way that promotes understanding. Informed consent requires voluntary participation and full comprehension of risks and goals.
Scholarship Essay Compare And Contrast Essay IntroduGina Brown
The document discusses the process for obtaining writing assistance from HelpWriting.net. It involves 5 steps: 1) Create an account with a password and email. 2) Complete an order form providing instructions, sources, and deadline. 3) Review bids from writers and select one based on qualifications. 4) Review the completed paper and authorize payment if satisfied. 5) Request revisions until fully satisfied, with a refund offered for plagiarized work. The service aims to provide original, high-quality content through a bidding system and revision process.
College Essay Examples Of Essay About LifeGina Brown
This summary provides an overview of the document in 3 sentences:
The document discusses steps to request a paper writing service through HelpWriting.net, including creating an account, providing instructions for the paper in an order form, and selecting a writer to complete the work. The bidding process and paper revisions are described. The service aims to provide original, high-quality content and offers refunds if papers are plagiarized.
Writing The Thesis Statement Write An A Research Paper - How To WriteGina Brown
The document discusses two female artists from different eras - Sofonisba Anguissola from the Renaissance period and Artemisia Gentileschi from the Baroque period. It notes some similarities in their lives and careers, such as both losing their mothers at a young age and traveling between various cities. It also discusses influences on their artistic styles, with Gentileschi being inspired by Caravaggio's tenebrism technique. There are suggested connections between the artists through other famous figures of their time as well.
Sample Persuasive Speech Powerpoint Defining A PeGina Brown
The document provides background information on the establishment of Liberia. It discusses how Liberia was founded in 1816 by the American Colonization Society to resettle freed American slaves in Africa. The first settlers established the settlement of Monrovia in 1824. Over time, conflicts arose between the settlers and the American society. In the mid-20th century, Liberia pursued economic development through foreign investment in iron ore mining, while indigenous groups were still denied full political rights.
Winter Writing Paper Free Worksheets. Online assignment writing service.Gina Brown
1. The document provides instructions for requesting and obtaining writing assistance from HelpWriting.net. It outlines a 5-step process: creating an account, submitting a request form, reviewing writer bids and selecting one, revising the paper if needed, and requesting revisions.
2. The site uses a bidding system where writers submit bids to complete writing requests, and clients can choose a writer based on qualifications, history, and feedback. The site promises original, high-quality work or a full refund.
3. The process allows clients to obtain writing assistance by having writers complete their assignments according to the provided instructions and deadline. Clients can also request revisions to ensure satisfaction.
Formal Essay What It Is And How To Write ItGina Brown
The document provides instructions for submitting an assignment request to the website HelpWriting.net. It outlines a 5-step process: 1) Create an account with a password and email. 2) Complete a 10-minute order form providing instructions, sources, and deadline. 3) Review bids from writers and choose one. 4) Review the completed paper and authorize payment. 5) Request revisions until satisfied with the work. The purpose is to help students get high-quality original assignments written for them through this online service.
Funny College Essay - College Homework Help AGina Brown
The document provides instructions for requesting and completing an assignment writing request through the HelpWriting.net website. It outlines a 5-step process: 1) Create an account with a password and email; 2) Complete a 10-minute order form with instructions, sources, and deadline; 3) Review bids from writers and choose one; 4) Review the completed paper and authorize payment; 5) Request revisions until satisfied. It emphasizes the site's commitment to original, high-quality work and full refunds for plagiarized content.
Hoja Para Escribir Texto - SEONegativo.ComGina Brown
This document summarizes the key steps to request writing assistance from the website HelpWriting.net:
1. Create an account with a password and valid email.
2. Complete a 10-minute order form providing instructions, sources, deadline, and attaching a sample work if wanting the writer to mimic your style.
3. Review bids from writers and choose one based on qualifications, history, and feedback, then pay a deposit to start the assignment.
4. Ensure the completed paper meets expectations, and if so, authorize full payment to the writer. Revisions are free.
Tips For Writing A Thesis Introduction - Writefiction58Gina Brown
The document provides tips for writing a thesis or requesting writing help from HelpWriting.net. It outlines a 5 step process: 1) Create an account, 2) Complete an order form providing instructions, sources and deadline, 3) Review bids from writers and choose one, 4) Review the completed paper and authorize payment, 5) Request revisions to ensure satisfaction and get a refund if plagiarized. The service aims to provide original, high-quality content meeting customers' needs.
Research Paper Outline 8Th Grade - How To Write A ReGina Brown
1. The document outlines 5 steps for requesting an assignment writing service from HelpWriting.net, including creating an account, submitting a request form, reviewing bids from writers, choosing a writer, and authorizing payment upon approval of the completed work.
2. Users can request revisions to ensure satisfaction with the completed assignment. HelpWriting.net promises original, high-quality content and refunds for plagiarized work.
3. The document provides instructions for using HelpWriting.net's assignment writing service.
92 Inspiration Forms Of Narrative Stories In GraphiGina Brown
The document provides instructions for requesting writing assistance from HelpWriting.net. It outlines a 5-step process: 1) Create an account with a password and email; 2) Complete a 10-minute order form with instructions, sources, and deadline; 3) Review bids from writers and select one; 4) Review the completed paper and authorize payment; 5) Request revisions until satisfied, with a refund option for plagiarism. The service aims to fully meet customer needs through this process.
001 Essay About Myself Thatsnotus. Online assignment writing service.Gina Brown
The document discusses how DNA evidence can be a powerful forensic tool for identifying criminals. DNA fingerprinting was first used in court in 1987, and even a small sample of hair, skin, or saliva contains enough DNA to identify a unique individual through analysis of short tandem repeats (STRs) in their DNA. Microbes like bacteria are also discussed, noting that while some can cause illness, others can be engineered to produce medicines through transgenic bacteria.
What Does A Research Paper Look Like For A Science FairGina Brown
This document discusses the importance and impact of English in Kenya. While English serves as an important lingua franca and was adopted post-colonization, its use has also divided society between elites who are proficient in English versus commoners who have low English comprehension. There are concerns that political elites use English selectively to maintain power over large segments of the population who do not fully understand the language.
Apsolventska Godina I Studentska Prava RCroatiaGina Brown
The document discusses the steps to get writing help from the website HelpWriting.net. It outlines registering for an account, completing an order form with instructions and deadline, reviewing writer bids and choosing one, placing a deposit to start the work, reviewing and approving the completed paper, and having the option to request revisions. The website promises original, high-quality content and refunds for plagiarized work.
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
Executive Directors Chat Leveraging AI for Diversity, Equity, and InclusionTechSoup
Let’s explore the intersection of technology and equity in the final session of our DEI series. Discover how AI tools, like ChatGPT, can be used to support and enhance your nonprofit's DEI initiatives. Participants will gain insights into practical AI applications and get tips for leveraging technology to advance their DEI goals.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
-------------------------------------------------------------------------------
Find out more about ISO training and certification services
Training: ISO/IEC 27001 Information Security Management System - EN | PECB
ISO/IEC 42001 Artificial Intelligence Management System - EN | PECB
General Data Protection Regulation (GDPR) - Training Courses - EN | PECB
Webinars: https://pecb.com/webinars
Article: https://pecb.com/article
-------------------------------------------------------------------------------
For more information about PECB:
Website: https://pecb.com/
LinkedIn: https://www.linkedin.com/company/pecb/
Facebook: https://www.facebook.com/PECBInternational/
Slideshare: http://www.slideshare.net/PECBCERTIFICATION
How to Make a Field Mandatory in Odoo 17Celine George
In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
How to Add Chatter in the odoo 17 ERP ModuleCeline George
In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
বিসিএস ও ব্যাংক এর লিখিত পরীক্ষা ...+এছাড়া মাধ্যমিক ও উচ্চমাধ্যমিকের স্টুডেন্টদের জন্য অনেক কাজে আসবে ...
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
8-15 Fund Size And Performance Of Unit Trust Funds In Kenya
1. Journal of Finance and Accounting
2021; 9(1): 8-15
http://www.sciencepublishinggroup.com/j/jfa
doi: 10.11648/j.jfa.20210901.12
ISSN: 2330-7331 (Print); ISSN: 2330-7323 (Online)
Fund Size and Performance of Unit Trust Funds in Kenya
Anderson Namu Nthimba, Ambrose Jagongo, Lucy Wamugo
Department of Finance and Accounting, School of Business, Kenyatta University, Nairobi, Kenya
Email address:
To cite this article:
Anderson Namu Nthimba, Ambrose Jagongo, Lucy Wamugo. Fund Size and Performance of Unit Trust Funds in Kenya. Journal of Finance
and Accounting. Vol. 9, No. 1, 2021, pp. 8-15. doi: 10.11648/j.jfa.20210901.12
Received: October 18, 2020; Accepted: November 7, 2020; Published: February 10, 2021
Abstract: When investors take part in any investment, the main objective is to increase their wealth. This is achieved when
share prices increase. The performance of unit trusts in Kenya has however been poor compared to the counterparts in the rest
of the world. The poor performance is a discouragement to individual and corporate investors in addition to affecting the
realisation of financial stability according to the Kenya vision 2030. Empirical literature from developed and emerging markets
posits that fund size explain the performance of unit trust funds. This study therefore investigated the effects of fund size on the
performance of unit trust funds in Kenya. The study adopted an explanatory research design and positivism philosophy. The
target population was 16 unit trust firms in Kenya as at the end of the year 2017. The study used a census approach. Secondary
data was collected from the audited financial statement of respective unit trusts for the period 2005 to 2017 using a data
collection schedule. The study established that fund size has significant positive effect on performance in all funds. The study
concluded that increase in fund size increases performance. The study recommends that capital market authority should
monitor performance of unit trusts constantly and in addition develop merger policies to encourage small unit trust to merge in
order to take advantage of economies of scale.
Keywords: Fund Size, Unit Trust Funds, Performance, Unit Trust Funds Performance
1. Introduction
The investment canon put forward by Goetzmann posits
the earning of returns as the reason for investments by any
investor [16]. The desire for earnings in the future backs the
motivation to invest and that the earning anticipated should
be able to meet future cash needs [28]. Further, investors'
motivation in investing anchors on the desire to increasing
wealth and growing over time the initial investment.
Investment returns compensate for the investment period, the
inflation rate and the repayment uncertainty [37].
An investment in unit trusts funds is as common as
investing in shares and is prevalent amongst stockholders
universally since it grants them a chance to receive earnings
[17]. Unit trusts offer investors a chance of earning yearly
proceeds in the form of bonuses/dividends. It also serves as a
basis for the long term and short term build-up of wealth
resembling a savings account [43, 30]. The objective of
making investments in unit trust funds is earning dividend
income or obtaining capital gains. Capital gains are realized
when there is an increase in the price of a unit trust fund, or
returns of a unit trust fund are positive during the holding
period [17].
Empirical literature on performance of unit trust funds in
developing, emerging and developed capital markets presents
mixed results. Some reported underperformance while others
reported over performance. Bonolo, Beatrice and John; Praven,
Das and Uma; and William reported weak performance or
underperformance [50, 49], 44]. Mohamed; Halil; and See and
Jusoh reported positive performance or outperformance of unit
trust funds [30, 20, 41].
For enhanced decisions, investors should be well versed
with individual unit trusts fund share returns as well as the
fund characteristics that influence returns in unit trust funds
[51]. This study examined the effect of fund size on the
performance of unit trust funds in Kenya.
1.1. Fund Size
Fund size plays an essential part in clarifying variances
across unit trust funds performance [15]. This study
investigated the effect of fund size on the performance of unit
trust funds, which is among the most common and significant
2. Journal of Finance and Accounting 2020; 9(1): 8-15 9
variables amongst the literature. Investors inject more money
to better performing funds and withdraw or avoid injecting
more funds to poorly performing funds [4]. Fund size is
calculated as the Net Asset Value (NAV) for each unit trust
fund based on the method of measurement by Carhart [9].
Brennan and Hughes argued that, large funds present a
wide spread for fixed expenses, more resources for research,
better opportunities of investment that are not available to
smaller funds in addition to negotiating improved ranges due
to more prominent positions and trading capacities [5].
However, large funds experience particular difficulties in
administration and persistence performance [2]. Funds with
massive amounts experience deteriorating performance since
investment avenues diminish [2]. Yin-Ching and Hung
(2003) held a position that small funds outdo in performance
their corresponding in the category of bond fund. Smaller
funds focus on a small number of investment options, but
when they become large, administrators need to continue
finding better opportunities for investment; in effect,
diseconomies of scale end up diluting the managerial skills
[2].
Empirical studies across the various markets in the world
do not agree on the effect of fund size on the performance of
unit trust funds. Chen, Hong, Huang and Kubick argued of
shrinking of returns with respect to scale for funds invested
in the USA and a contrary position for funds located outside
the USA [10]. Cremers and Petajisto showed smaller funds to
be more active [11]. Grinblatt and Titman held evidence of a
mixed relationship between fund size and fund returns [19].
Besides, once a fund obtains inflows, there is a tendency of
increasing its positions as opposed to diversification into
newer assets [36].
Yan; Edelen, Evans, and Kadlec pointed out the primary
sources of diseconomies of scale in USA funds to be costs of
trading and liquefication [47, 13]. Compared to smaller
equity funds, more substantial equity funds are inclined to
performing more poorly outside the USA [12]. Generally,
size-performance evidence isn't undivided. Current studies
appear to be in support of the presence of diseconomies of
scale. The reviews are, to a great extent obtained from
developed markets, and it is paramount to make findings of
fund size-performance effect in emerging markets as well as
Kenya in particular. The size of unit trust industry has been
increasing in the world across. In 2012, the total net assets in
the sector amounted to United States Dollar (USD) 32 trillion
and by 2017 had grown to USD 49 trillion with the USA and
Europe, contributing the highest share [22]. In Kenya, the net
asset value of the industry grew over the period to USD 558
million in 2017[8].
1.2. Performance of Unit Trust Funds
Typically, investors select funds based on partial
performance, although sensitivity may be due to variances of
past performance. Many studies suggest that conventional
investors react by directing more cash to better performing
funds and not the same way to inadequately performing
funds [4]. Performance in the market solely determines the
survival of the fund, that is, a persistent increase in capital
gains for growth funds and constant returns for value funds.
[15]. Maina asserts evaluation of unit trust funds
performance in terms of capital growth, periodical returns in
the form of dividends, interest received, capital gains and Net
Asset Value [26].
In Kenya, like other countries, many investors are
dependent on unit trust funds as vehicles of investment [26].
The unit trust market is greatly unexploited in Kenya and
research on their performance is significantly deficient [15].
Assortment measures of performance have been used all
through the literature to assess the performance of the funds.
The commonly used measures are; Jensen Alpha, Treynor
ratio and Sharpe ratio, [52]; [30]; [39]. Non-risk-adjusted
measures such as fund return formulas, portfolio return
formulas and Lower Partial Moment Capital Asset Pricing
Model have also been used [30]; [39]. This study measured
the performance of unit trust funds using Jensen Alpha. The
ratio is the most used across literature in assessing risk-
adjusted returns of unit trusts funds.
Examination on some of the unit trust funds, show a trend
of deteriorating performance. For example, Old Mutual
equity fund generated a loss in 2015 and 2016 of Kenya
shillings (Kshs) 74,982,000 and 227,225,000, respectively.
Equity fund had a decrease in profits in the year 2016 of 16.3
per cent from the previous year 2015. The balanced fund had
a loss of Kshs 27,552,000 in 2015. East African fund had
losses dipping further in 2016. The Britam, equity fund had
deteriorating profits from 2013 culminating into losses of
Kshs 140,288,000 and 386,942,000 in the years 2016 and
2015 respectively. Cooperative insurance company funds,
among others, exhibit a similar trend which indicates a gap
for investigation.
1.3. Unit Trust Funds in Kenya
Unit trust funds are a set of financial securities carefully
chosen to meet the specified group of potential investors'
objectives [52]. The potential investors, in addition to lacking
enough financial resources to construct a portfolio they also
lack expertise, knowledge and time necessary in managing
the portfolio [30]. Participants are shareholders who take up
equity securities of the unit trust [45]. Unit trusts accord
investors opportunities of investing in a well-diversified
portfolio without them assuming the risk of managing the
portfolio [3].
In developed markets, for example, United States of
America (USA), the growth of mutual fund has been
noteworthy over the past several years with the global Gross
Domestic Product (GDP) growing to 36 per cent by the year
2014 [22]. Plantier asserts that the USA market established
total cumulative capital inflows of approximately USD 10
trillion over the period 2000 – 2014 [35]. The largest mutual
fund industry in the world with over USD17.8 trillion in
assets and accounting for more than half of the $33.4 trillion
of assets value is USA [21, 14]
Africa, when combined with Asia pacific, accounts for
13percent of total world assets and is among the lowest in the
3. 10 Anderson Namu Nthimba et al.: Fund Size and Performance of Unit Trust Funds in Kenya
world [21]. The unit trust industry in Kenya accounts for 0.80
per cent of Kenyans GDP [46] and USD 558 million [8].
Since its inception, there are a total of 20 unit trusts firms
registered [8]. Central to the stock market performance of
any country is the listed firms' financial performance in the
economy at large [25]. Nairobi Securities Exchange (NSE)
listed firms performance has been meager [32]. Makori posits
that, some of the listed firms at the NSE are not only in
unhealthy financial position but in addition, they have
suffered financial decline and Capital Markets Authority
(CMA) has delisted them. The fall, in return, affects the
performance of unit trusts funds since NSE provides an
investment platform for unit trust funds [27].
According to the Republic of Kenya, the vision 2030
financial services aims to raise savings and investment rates
from 17 per cent to 30 per cent of Kenya's GDP and raise
stock market capitalization from 50 per cent to 90 per cent of
GDP [38]. However, nine years later, the unit trust industry
contributes 0.80 per cent of the Kenyans GDP [46]. The unit
trusts market in Kenya is mainly dominated by four core
funds which include; money market, equity, bond and
balanced funds [8].
1.4. Statement of the Problem
The unit trust markets in many countries are driving their
economies in an upward trajectory. The Kenyan unit trust
market on the other hand has continued to experience the
poor performance with some reporting a stream of losses
from year to year. Weak performance trends of unit trusts in
Kenya are a discouragement to individual and corporate
investors in addition to hindering the realization of vision
2030. Kenya's unit trust industry contributes an equivalent of
0.80 per cent of the country’s GDP [46].
Countries that started unit trusts the same time with Kenya
in early 2000 have grown substantially in terms of the
amount invested. Such countries include Morocco, whose
total value is USD 26.65 billion, Peru with an overall net
worth of over USD 6.1 billion and Turkey, valued at more
than USD 16 billion. Kenya, on the other hand, has a total
value of USD 275.3 million [46]. The Kenyan case shows
low growth in the sector and concern to the country, investors
and other stakeholders. In addition, it reflects lack of
understanding of the market by the investors or the fund
managers are not doing enough to woo investors [1]. The
dismal performance also leads to loss of confidence and
erosion of investor's wealth in the unit trust [28].
On the relationship of fund size and performance of unit
trusts, studies have shown mixed results. There is no clear
documentation in the studies on a particular link between the
performance of unit trust funds and fund size. Studies carried
out in Kenya have not extensively addressed the connection
amongst performance of unit trusts funds and the fund size.
Discrepancies in findings on the same subject, in
consequence, stirred the present study. The purpose of this
study was to explore the effect of fund size on performance
of unit trust funds using panel data for thirteen years and,
also investigated the moderation effect of inflation on the
relationship between fund size and performance of unit trusts
funds in Kenya.
1.5. Conceptual Frame Work
The framework defines the researcher's conceptualization
and interactions concerning the study variables. The
conceptual framework graphical representation for this study
is as in Figure 1
Source: Researcher (2020)
Figure 1 Conceptual Framework.
2. Research Methodology
2.1. Research Philosophy and Design
This research considers positivism philosophy to be the
most appropriate because the study looks at the connection
between fund characteristic and performance of unit trusts
funds in Kenya. The event and environment of interest are
objective, independent, and external of the researcher [6].
Subjective interpretations of results based on numbers have the
minimal possibility [7]. Non-experimental explanatory
research design was adopted to analyse the effect of fund size
on the performance of unit trust funds in Kenya. Explanatory
research establishes a causal association amongst variables
[40]. Explanatory design is ideal where a study is endeavoring
to clarify how phenomena function by finding the fundamental
elements that bring change and in which case there is no
manipulation of the independent variable [23]. Non-
experimental design is an orderly practical enquiry where there
is no express authority over the explanatory variables by
investigators since symptoms happened in the past [23].
2.2. Empirical Model
Analysis of the effects of fund size on the performance of
unit trust funds employed a panel regression model since the
4. Journal of Finance and Accounting 2020; 9(1): 8-15 11
data had both cross-sectional and time-series dimensions as
put forward by Greene (2008). The empirical model used in
the study is as below:
for equity fund, money market fund, bond fund and balanced
fund respectfully.
Fund Performance =β0+ β2FSit + µi + uit (1)
Fund Performance =β0+ β2FSit + µi + uit (2)
Fund Performance =β0+ β2FSit + µi + uit (3)
Fund Performance =β0+ β2FSit + µi + uit (4)
Where,
Fund Performance is the performance of each unit trust
fund measured by Jensen Alpha model.
FS is the size of the unit trust fund.
OE is the unit trust fund operating expense.
SR is unit trust fund systematic risk (measured with Beta).
USR is unit trust fund Unsystematic risk
β0 is the constant term
β1….. β5 represents coefficients of the explanatory
variables
i = represents firms (cross-sectional dimension) ranging
from1 to 20
t = represents years (time series dimension) ranging from
2005 to 2017
µi = is Individual fund effect
uit = Is idiosyncratic error term
2.3. Moderating Effect of Inflation on the Relationship
Between Fund size and Performance of Unit Trust
Funds in Kenya
The Whisman and McClelland test for the moderation
effect of inflation on the relationship between fund
characteristics and performance of unit trusts funds in Kenya
was adopted in this research [42]. The model proposes two
main stages. First, inflation in a particular year is introduced
in model 2a to 2d as a variable as shown in equation 3a to 3d
below:
Fund Performance =β0+ β2FSit + β51nIRt + µi + uit (5)
Fund Performance =β0+ β2FSit + β51nIRt + µi + uit (6)
Fund Performance =β0+ β2FSit + β51nIRt + µi + uit (7)
Fund Performance =β0+ β2FSit + β51nIRt + µi + uit (8)
Where IRt in the inflation rate in year t.
Secondly, inflation is introduced as a moderator as shown
in equation 3.8a to 3.8d below:
Fund Performance = β0+ β2FSit + β51nIRt + β7 [FSit*InIRt] +
µi + uit (9)
Fund Performance = β0+ β2FSit + β51nIRt + β7 [FSit*InIRt] +
µi + uit. (10)
Fund Performance = β0+ β2FSit + β51nIRt + β7 [FSit*InIRt] +
µi + uit (11)
Fund Performance = β0+ β2FSit + β51nIRt + β7 [FSit*InIRt] +
µi + uit (12)
2.4. Target Population and Data Collection
The target population for this study was the 16 unit trusts
firms in Kenya. These are the unit trust firms that are
registered by CMA by this period and data was available.
Data was collected using data extraction tool.
3. Research Findings and Discussion
Table 1. Descriptive Statistics.
Fund Variables Mean Std. Dev. Minimum Maximum
Equity
performance -15.9348 4.576758 -22.05 -4.28
Fund Size 8.20101 0.92488 5.01 9.79
Inflation Rate 8.160109 3.233511 3.971667 16.23083
Money
market
performance -23.69112 11.79204 -39.12 2.69
Fund Size 8.911495 0.6549662 6.52 10.16
Inflation Rate 8.271214 3.293276 3.971667 16.23083
Bond
performance -19.63447 4.804927 -27.1 -6.29
Fund Size 7.652941 0.6777393 4.6 8.69
Inflation Rate 8.091342 3.066169 3.971667 16.23083
Balanced
performance -10.21065 10.98119 -37.92000 -1.229000
Fund Size 8.171414 0.7301426 5.7 9.3
Inflation Rate 8.115689 3.124007 3.971667 16.23083
Source: Study data (2020)
As indicated in Table 1, the mean performance of equity
fund is -15.93475 below what is predicted by CAPM with a
standard deviation of 4.576758 and minimum and maximum
values of -22.05000 and – 4.280000, respectively. The
standard deviation indicates that the data is highly variable as
depicted by minimum and maximum values since it includes
both small and large unit trust funds over the period. The
negative value of the Jensen alpha indicates that equity funds,
on average, underperform the market. The negative values for
minimum and maximum indicate that all equity funds were
underperforming the market in the period of study. Table 1
further indicates that each unit trust firm operates an average
5. 12 Anderson Namu Nthimba et al.: Fund Size and Performance of Unit Trust Funds in Kenya
equity fund of 8.201010. The fund size has a standard
deviation of 0.924880, a minimum value of 5.010000, and a
maximum of 9.790000, which explains the high variation.
On the money market fund, Table 1 shows the mean
performance as -23.69112 below what is predicted by
CAPM. The standard deviation is 11.79204, which shows
data to be highly variable as depicted by minimum and
maximum values of -39.12000 and 2.690000, respectively.
The negative value of the Jensen alpha indicates that the
money market fund, on average, is underperforming the
market. The positive value indicates that some of the funds
were over performing the market in the period of study. On
fund size, Table 1 further indicates, on average, the firm size
in the money market fund to be 8.911495. The firm size has a
standard deviation of 0.654966, which means high variation,
as illustrated by the minimum and maximum values of
6.520000 and 10.16000 respectfully.
Furthermore, the summary statistics in Table 1 indicate
that, on average, during the period of analysis, the rate of
inflation was 8.271214 per cent. The standard deviation was
3.293276 per cent, while the minimum and maximum values
were 3.971667 and 16.23083 per cent, respectively.
Therefore, during the period of analysis, the funds
experienced mild to rapid levels of inflation. This situation is
in harmony with the economic cycles during the study
period. Further, guaranteeing the representative nature of
data.
Also, Table 1 shows a mean performance of -19.63447
below what is predicted by CAPM on the bond fund. The
standard deviation is 4.804927 showing that the performance
is highly variable with minimum and maximum values of -
27.10000 and -6.290000, respectively. The negative value of
the Jensen alpha indicates that the bond fund, on average,
underperforms the market. The negative values for minimum
and maximum indicate that all bond funds were
underperforming the market in the period of study. The
average amount of operating expense, as shown in Table 1, is
6.21221 for any of the bond funds. The fund size standard
deviation is 0.677739, with minimum values of 4.600000 and
a maximum of 8.690000, which shows the small funds and
the large funds over the study period. Furthermore, the
summary statistics in Table 1 suggest that, on average, during
the period of analysis, the rate of inflation was 8.091342 per
cent. The standard deviation was 3.066169 per cent, while
the minimum and maximum values were 3.971667 and
16.23083 per cent, respectively. Therefore, during the period
of analysis, the funds experienced mild to rapid levels of
inflation. This scenario is in harmony with the economic
cycles during the study period. Further, guaranteeing the
representative nature of data.
The balanced fund, on the other hand, as depicted by Table
1, has a mean performance of -10.21065 below what is
predicted by CAPM. The minimum and maximum values are
-37.92000 and -1.229000, respectively. The negative value of
the Jensen alpha indicates that the balanced fund has, on
average, been underperforming the market. The negative
values for minimum and maximum show that all balanced
funds were underperforming the market in the period of
study. The standard deviation of 10.98119 indicates a high
variation in the performance of balanced funds within the
period of study. On fund size, Table 1 further indicates, on
average, the fund size of the balanced fund to be 8.171414.
The fund size has a standard deviation of 0.730143, with
minimum values of 5.700000 and a maximum of 9.300000.
The standard deviation is highly variable over the period
based on the size of the fund.
On the inflation rate, the summary statistics in Table 1
indicate that, on average, during the period of analysis, the
inflation rate was 8.115689 per cent. The standard deviation
was 3.124007 per cent, while the minimum and maximum
values were 3.971667 and 16.23083 per cent, respectively.
Therefore, during the period of analysis, the funds
experienced mild to rapid levels of inflation. This inflation
rate is in harmony with the economic cycles during the study
period. Further, guaranteeing the representative nature of
data.
3.1. Hypothesis Testing
This section presents the study findings thematically based
on the study objectives. It shows the effect of operating
expenses, fund size, systematic risk, and unsystematic risk on
fund performance in Kenya. The model results were
interpreted and discussed at a 95% significance level
(α=0.05).
Table 2. Effect of fund size on fund performance.
Fund Variable Coefficient Std. Error t-Statistic Prob.
Equity
Constant -1.41E+16 4.26E+16 -0.330191 0.7421
Fund size 2.51E+08 25129369 10.00694 0.0000
Money
market
Constant 51851601 14981681 3.461000 0.0008
Fund size 0.085234 0.004061 20.98723 0.0000
Bond
Constant 5020687. 4061819. 1.236069 0.2208
Fund size 0.035612 0.010773 3.305717 0.0015
Balanced
Constant -3534459. 20990778 -0.168382 0.8667
Fund size 0.025146 0.019091 1.317167 0.0191
Source: Study Data (2020)
The findings in Table 2 indicate that the p-values are less
than the significance level of 0.05. Fund size has a significant
positive connection with performance in all funds.
3.2. Fund Size and Performance of Unit Trust Funds
In light of the objective, the study sought to establish the
effect of fund size on the performance of unit trust funds in
Kenya. Testing done on the null hypothesis (H01) is that; fund
size has no significant effect on the performance of unit trust
funds in Kenya. Table 2 shows that the coefficient of fund
size in the equity fund is 2.51E+08, with corresponding p-
values of 0.0000 and t-statistic of 10.00694. The p-value is
less than 0.05, and hence the null hypothesis is rejected,
meaning that fund size affects the performance of equity
fund. In the money market fund, the coefficient is 0.085234,
with a p-value of 0.0000 and a t-statistic of 20.98723. The p-
value is less than 0.05, and hence the null hypothesis is
rejected. Fund size, therefore, affects the performance of
money market funds.
6. Journal of Finance and Accounting 2020; 9(1): 8-15 13
On bond fund, the coefficient is 0.035612, with a
corresponding value of p-value of 0. 0.0015 and t-statistic of
3.305717. The p-value is less than 0.05, hence rejecting the
null hypothesis. Fund size, therefore, affects the performance
of the bond fund. For the balanced fund, the coefficient is
0.025146, with a p-value of 0.0191 and a t-statistic of
1.317167. The p-value is less than 0.05, and hence the null
hypothesis is rejected, meaning that fund size affects the
performance of balanced funds in Kenya. The coefficients of
fund size in all funds are positive, meaning that fund size and
performance have a positive relationship in that an increase
in fund size increases the performance of unit trust fund in
Kenya. These findings do not agree with the results by [34],
[29], 41, and [33], who observed no effect of fund size on the
performance of unit trust funds. Ainulashikin and Andrew
saw a significantly negative effect [4] while Samira and
Slaheddine; and Maina found a significant positive effect of
fund size and performance of unit trust funds, which agree
with the findings in this study [39]; [26].
3.3. Moderating Effect of Inflation on the Relationship
Between Fund Size and Performance of Unit Trust
Funds
The testing of the second hypothesis was tested through the
estimation of model 2a – 2d and 3a - 3d. Table 3 below reports
model 2a – 2d estimates, and Table 4 illustrates the estimates of
model 3a – 3d. The results in Table 3 were interpreted
simultaneously with those of Table 4.
Table 3. Inflation as an independent variable.
Fund Variable Coefficient
Standard
Errors
t-Statistic P-value
Equity
Constant -7.26E+16 6.16E+16 -1.178493 0.2416
Fund size 2.50E+08 23368196 10.70613 0.0000
Inflation rate 6.74E+15 5.73E+15 1.176464 0.2424
Money
market
Constant 34809098 23445998 1.484650 0.1408
Fund size 0.084472 0.003862 21.87034 0.0000
Inflation rate -580205.5 1993357. -0.291070 0.7716
Bond
Constant 7932359. 3388655. 2.340858 0.0218
Fund size 0.035253 0.008265 4.265348 0.0001
Inflation rate -473258.3 179692.3 -2.633715 0.1002
Balanc
ed
Constant 63626836 26668174 2.385872 0.0191
Fund size 0.017187 0.018059 0.951714 0.0343
Inflation rate -6778164. 1809088. -3.746730 0.1603
Source: Study data (2020)
Table 3 above indicates that the coefficient of inflation,
which is of interest under model 2a -2d in the equity fund, is
6.74E+15 with a corresponding p-value of 0.2424, which is
higher than the level of significance of 0.05 hence insignificant.
In the money market fund, the coefficient is -580205.5, with a
corresponding p-value of 0. 7716. The p-value is greater than
0.05 hence insignificant. The bond fund has a coefficient of -
473258.3, with a p-value of 0.1002. The p-value is greater than
0.05; hence the coefficient is insignificant. On the other hand,
the balanced fund has a coefficient of -6778164, with a p-value
of 0.1603. The p-value is greater than 0.05; hence the
coefficient is insignificant.
Table 4. Inflation as a Moderator on the relationship between fund size and performance.
Fund Variable Coefficient Standard Errors t-Statistic P-value
Equity
Constant -1.59E+16 1.14E+17 -0.140278 0.8888
Fund size 2.76E+08 79163504 3.487174 0.0008
Inflation rate -5.13E+13 1.28E+16 -0.004001 0.0368
Fund size * Inflation rate -3927205. 10124781 -0.387881 0.0340
Money market
Constant 30262369 42043321 0.719790 0.4734
Fund size 0.045882 0.021592 2.124988 0.0362
Inflation rate 243866.9 5002663. 0.048747 0.0162
Fund size * Inflation rate 0.005595 0.003125 1.790444 0.0365
Bond
Constant -3512189. 7365573. -0.476839 0.6349
Fund size 0.035443 0.023182 1.528931 0.0130
Inflation rate 875316.5 796057.4 1.099564 0.0275
Fund size * Inflation rate 7.11E-05 0.002529 0.028098 0.0197
Balanced
Constant -32501217 61125236 -0.531715 0.5963
Fund size 0.144451 0.047497 3.041281 0.0031
Inflation rate 5154691. 7625258. 0.676002 0.0500
Fund size * Inflation rate -0.016211 0.005547 -2.922260 0.0044
Source: Study data (2020)
Table 4 above illustrates the introduction of inflation as a
moderator. The coefficient of interest is that of the interaction
term. The coefficients of the interaction term for fund size in
equity fund is significant. In Table 3, the coefficient of inflation
for the equity fund is insignificant. The null hypothesis that
inflation has no moderating effect in the relationship between
fund size and the performance of unit trust funds in Kenya is
rejected at the significance levels of 0.05 for the equity, money
market,bond and balanced funds. For this reason, inflation has a
moderating effect on the relationship between fund size and
performance of all funds in Kenya.
These findings are consistent with lemantile who observed
a negative effect on performance [24] and contradicts
Mohammadreza and Esmaeel who observed a positive effect
of inflation on performance [31].
4. Summary, Conclusion and
Recommendations
4.1. Summary
The background presented in the study culminated to the
7. 14 Anderson Namu Nthimba et al.: Fund Size and Performance of Unit Trust Funds in Kenya
statement of the problem. The study formulated research
objectives to address the Research problem. A conceptual
framework was developed to show the relationship between
the variables. The research methodology of the study is given
and explanation for choosing it. Non-experimental
explanatory research design and a census of sixteen unit trust
firms were taken. Panel data for the period 2005 to 2017 was
used for analysis. The study found performance averages on
all funds to be negative, indicating their performance to be
below that which is predicted by CAPM. Additionally, their
standard deviations were higher than the mean, an indication
that the data was highly spread.
The study sought to establish the effect of fund size on the
performance of unit trust funds. The findings were that there is a
significant positive relationship with performance in all funds.
Therefore as the size of fund increases, performance increases.
Further, the study sought to investigate the moderating effect of
inflation on the relationship between fund size and the
performance of unit trust funds. The study findings revealed that
inflation significantly moderates the relationship between fund
size and the performance of unit trust funds.
4.2. Conclusion
The study makes several conclusions based on the empirical
findings in relation to the study objectives and hypotheses. Most
unit trust funds' performance is below the CAPM predicted
performance. In light of the test of H01, the study found out that
fund size has a positive and significant effect on the
performance of all unit trust funds. This finding is supported by
several empirical studies but also contradicts other studies.
Hence the study concludes that increased fund size increases the
amounts of investments and helps funds enjoy the economies of
scale, leading to improved performance.
Finally, the result of H02, points out that inflation has a
moderating effect on the relationship between fund
characteristics and performance of unit trust funds. Hence the
study concludes that inflation moderates the relationship
between fund size and performance of unit trust funds.
4.3. Recommendations
In light of the findings of the study and conclusions
thereof, some recommendations to policy and practice are
noteworthy. Firstly, the management of unit trust funds ought
to be more careful in handling and better usage of resources
to improve the performance of the unit trusts. Secondly, the
management of unit trust funds ought to work closely with
the regulator (CMA) to create a supportive environment for
the unit trust firms to increase their fund size and managerial
capacity. There ought to be constant monitoring and
supervision, designing an in-service course in management of
unit trust funds to improve administrative ability, and
offering technical support. The academicians can use the
contribution of fund size on performance to identify the
knowledge gaps and pursue further research in the area.
Finally, the fiscal and monetary policy implementers should
seek to maintain desirable levels of inflation based on the
performance of the economy.
References
[1] Batra G., Laxmi V. & Gupta A. (2012). Mining the Investor's
Perceptions About Different Investment Options Using
Clustering Analysis. International Journal on Computer
Science and Engineering, 4 (9), 1513.
[2] Berk J. B. & Green R. C. (2004). Mutual fund flows and
performance in rational markets. Journal of political economy,
112 (6), 1269-1295.
[3] Bhatti M. I. (2009). Human Capital Needs in Islamic Banking
and Finance Industry. Paper presented at the Islamic Banking
and Finance Symposium, Melbourne, Australia on 6th July
2009.
[4] Ainulashikin M. & Andrew W. (2015). Comparative
performance-related fund flows for Malaysian Islamic and
conventional equity funds, International Journal of Islamic and
Middle Eastern Finance and Management, 8 (3), 380-394,
[5] Brennan M. & Hughes J. (1991). The individual investor.
Journal of Financial Services Research 18 (1): 59-74.
[6] Bryman A. & Bell E. (2003). Business Research Methods.
Oxford, Oxford University Press.
[7] Bryman A. & Bell E. (2011). Business research methods (3rd
Ed.), Oxford: Oxford University Press.
[8] Capital Market Authority (2017). The Capital Markets
Soundness Report 2016, Nairobi
[9] Carhart M. (1997). On Persistence in Mutual Fund
Performance, Journal of Finance, 52 (1), 57-82.
[10] Chen J., Hong H., Huang M. & Kubick J. D. (2004). Does
Fund Size Erode Mutual Fund Performance? The Role of
Liquidity and Organization. American Economic Review, 44,
1276-1302.
[11] Cremers K. M. & Petajisto A. (2009). How active is your fund
manager? A new measure that predicts performance. The
Review of Financial Studies, 22 (9), 3329-3365.
[12] Dahlquist M., Engström S. & Söderlind P. (2000). Performance
and Characteristics of Swedish Mutual Funds. Journal of
Financial and Quantitative Analysis, 35 (3), 409-423.
[13] Edelen R., Evans R. & Kadlec G. (2007). Scale effects in
mutual fund performance: The role of trading costs.
[14] Fredrik K., Han-Suck S. & Mats W. (2015). Determinants of
mutual fund flows, Managerial Finance, 41 (1), 10-25.
[15] Gitagia F. (2012). Fundamentals That Predict Mutual Fund
Performance: A case of fund managers in Kenya, Master Thesis
on MBA Accounting and Finance, Kenyatta University.
[16] Goetzmann W. N. (2000). An Introduction to Investment
Theory (5th
ed.). Yale: Ibbotson Associates.
[17] Goetzmann W. N., Ravid S. A. & Sverdlove R. (2012). The
pricing of Soft and Hard Information: Economic Lessons from
Screenplay Sales. Journal of Cultural Economics, 1-37.
[18] Greene W. H. (2008). Econometric Analysis (6th
ed). Upper
Saddle River, N. J.: Prentice Hall
8. Journal of Finance and Accounting 2020; 9(1): 8-15 15
[19] Grinblatt M. & Titman S. (1989). Mutual Fund Performance:
An Analysis of Quarterly Portfolio Holdings. The Journal of
Business, 62(3), 393-416.
[20] Halil K. (2015). A performance evaluation of Chinese mutual
funds, International Journal of Emerging Markets, 10(4), 820-
836.
[21] Investment Company Institute (2012). Investment Company
Fact Book 2012, Investment Company Institute, Washington,
DC,
[22] Investment Company Institute (2018). Investment Company
Fact Book 2018, a review of trends and activities in the
Investment Company Industry; 58th
edition Ippolito R. A.
(1989). Efficiency with costly information: A study of mutual
fund Performance, 1965-1984. Quarterly Journal of
Economics 104, 1-23.
[23] Kerlinger F. N. & Lee H. B. (2000). Foundations of
behavioural research (4th ed.). Fort Worth, TX: Harcourt.
[24] Lemantile, A. L. (2017). Effects of Macro-Economic Factors
on the Financial Performance of Mutual Funds in Kenya
(Doctoral dissertation, United States International University-
Africa).
[25] Maina F. G. & Sakwa M. M. (2012). Understanding financial
distress among listed firms in Nairobi stock exchange: A
quantitative approach using the Z-score multi-discriminant
financial analysis model. In Scientific Conference Proceedings.
[26] Maina R. W. (2013). The effect of portfolio characteristics on
financial performance of unit trusts in Kenya. Unpublished
MBA research project, school of business, University of
Nairobi.
[27] Makori M. D. (2017). Short-Term Financing Decisions and
Financial Performance of Non-Financial Firms Listed at The
Nairobi Securities Exchange, Kenya. Doctoral Dissertation,
Kenyatta University.
[28] Marangu K. (2015). Firm Characteristics and Share Returns of
Secondary Equity Offers at Nairobi Securities Exchange,
Kenya. PhD Thesis, Kenyatta University.
[29] Mbataru C. K. (2012). Factors Affecting the Performance of
Unit Trust Funds in Kenya. Master Thesis on MBA Finance
and Accounting, University of Nairobi.
[30] Mohamed A. B. (2016). Factors Affecting the Financial
Performance of Investment Funds A Comparative Study:
Islamic Versus Conventional Funds. Unpublished M.Sc Thesis
in Business Administration, Mansoura University.
[31] Mohammadreza M. & Esmaeel R. (2013). The Effect of
Economic Factors on the Efficiency of Mutual Funds in Iran
Seyedeh Javaneh Ahmadi Tulamy, Technical Journal of
Engineering and Applied Sciences 3(15), 1707-1711.
[32] Ngugi R., Amanja D. & Maina I. (2009). Capital market,
financial deepening and economic growth in Kenya. Centre
for the study of African economies Conference, 22-24.
[33] Norma M., Saad M., Shabri A., Majid, Salina K., Zarinah H.,
Rosylin M. Y. (2010). A comparative analysis of the
performance of conventional and Islamic unit trust companies
in Malaysia, International Journal of Managerial Finance,
6(1), 24-47.
[34] Ombongi P. N. (2014). Determinants of financial performance
of unit trusts in Kenya. Unpublished MBA project, University
of Nairobi.
[35] Plantier, C. (2015). Regulated funds, emerging markets, and
financial stability. ICI Global Research Perspective, 2(1).
[36] Pollet J. & Wilson M. (2008). How Does Size Affect Mutual
Fund Behaviour. Journal of Finance, 63(6), 1-49.
[37] Reilly F. K. & Brown K. C. (2011). Investment Analysis and
Portfolio Management (10th
ed.). Mason: South Western
Cengage Learning.
[38] Republic of Kenya (2007). Kenya vision 2030, Nairobi:
Government Press Robson C. (2002). Real World Research: A
Resource for Social Scientist and practioners, Research
oxford Blackwell.
[39] Samira B. B. & Slaheddine H. (2011). Predicting Tunisian
mutual fund performance using dynamic panel data model.
The Journal of Risk Finance, 12(3), 208-225.
[40] Saunders M., Lewis P. & Thornhill A. (2009). Research
methods for business Students. 5th
ed Italy: Prentice Hall.
[41] See Y. P. & Jusoh R. (2012). Fund characteristics and fund
performance: Evidence of Malaysian mutual funds.
International Journal of Economics and Management
Sciences, 1(9), 31-43.
[42] Whisman, M. A., & Mc Clelland, G. H. (2005). Designing,
Testing, and Interpreting Interactions and Moderator Effects in
Family Research. Journal of Family Psychology, 19 (1), 111 –
120
[43] Wilcox J. W. & Fabozzi F. J. (2013). Financial Advice and
Investment Decisions (1st
ed.). New York: Wiley.
[44] William J. T. (2010). Performance measurement of high yield
bond mutual funds. Management Research Review, 33(6),
609-616,
[45] Wilson R. (2010). The Economics of Mutual Funds: An
Islamic Approach.
[46] World Bank (2015). Mutual Funds in Developing Markets;
Addressing Challenges to Growth. 1818 H Street NW,
Washington DC 20433.
[47] Yan X. (2008). Liquidity, Investment Style and the relation
between fund size and fund performance, journal of financial
and quantitative analysis, 43, 741-768.
[48] Yin-Ching J. & Hung M. W. (2003). Mutual fund attributes
and performance, Financial Services Review, 12(2), 165-78.
[49] Praveen K., Das S. P. & Uma R. (2013). Performance
evaluation of socially responsible mutual funds using style
analysis, Social Responsibility Journal, 9 (1), 109-123.
[50] Bonolo M. T., Beatrice D. S., & John W. M. M. (2017).
Performance evaluation of equity unit trusts in South Africa.
Managerial Finance, 43(3), 379-40.
[51] Malhotra M., Thenmozhi M. & Arunkumar C. (2013). Factors
Influencing Abnormal Returns Around Bonus and Rights Issue
Announcements. Journal of Applied Finance, 19(4), 41-60.
[52] Ali M. G. H. (2012). A Comparative Analysis of the
Performance of the Investment Funds on the National
Commercial Banks of Egypt. Unpublished M.Sc. thesis
Faculty of Commerce, Mansoura University.