INVESTIGATING MUTUAL FUNDS IN BEKWAI, GHANA: IT'S RISK, RETURN AND SATISFACTION ABSTRACT
Over the years, investors have already been attracted to shared funds. This kind of study attempts to do an-depth analysis of the Ghanaian shared fund sector between the years 2006 and 2010. A great exhaustive literary works review upon mutual funds and portfolio diversification will probably be conducted. A great assessment from the performance of mutual money will be performed using the Sharpe and Sortino ratios in addition to the Jensen Leader. Comparisons will probably be made with similar indices to determine the attractiveness of the industry. The investment approach of account managers is likewise analysed and recommendations built. This conventional paper will provide traders with a broad overview of the Ghanaian common fund industry, its inherent risks and returns.
The potential conflict between mutual fund firms and the people who invest in these people is a traditional example of an agency problem. Consumers would like the fund in which they invest to use the judgment to optimize risk-adjusted expected returns (Chevalier and Ellison, 1997). Measuring the efficiency, risk and returns of mutual money thus turns into imperative while rational traders need this sort of information to create investment decisions. According for an article released by Most Africa for the 8th of November, 2010, figures unveiled by Ghana's statistical support indicated the fact that country's overall economy stood by GHВў44 billion dollars, 60% much more than estimated previous. Per this kind of figure, the nation was regarded to have obtained middle profits status. Ghana recorded at the moment, the largest Per Capita Salary in West Africa and ranked twenty-first in the country. The Ghanaian economy's steady growth provides attracted both equally domestic and international traders. Among the many expense opportunities in the area available to investors is the attractive mutual account industry which gives numerous rewards to the investors.
In line with the Securities and Exchange Commission, the number of mutual fund companies increased by 7 back in 2008 to 9 last season. The total Net Asset Value of money under managing by common funds firms was GHВў95, 817, 222. 27 last year while total fund breaking down stood by GHВў40, 433, 682. 45. A summary of the performance of the mutual fund industry last season is proven in dining tables 1 and 2 in the appendix. This info provides a lot of points of interest about how the Ghanaian mutual account industry has performed over time and more important how it compares to various other analogous common funds in the continent and elsewhere. It has informed the choice of enquiry as well as the need for analysis in the proposed area. Measuring the efficiency, risk and returns of mutual cash in the Ghanaian financial industry has effects for a number of stakeholders.
IS DESIGNED AND EXPLORATION OBJECTIVES
The general goal of this research is to assess the hazards and results associated with purchasing mutual money in Ghana. The study as well aims to draw a comparison involving the performance of the Ghanaian mutual funds sector and similar financial marketplaces. To achieve the general objectives, the following specific targets have been created to guide in data collection and evaluation. 1 . To distinguish what makes shared funds appealing to investors in Ghana installment payments on your To identify the kinds of mutual money available to Ghanaian investors three or more. To measure the performance of mutual money between 2006 and 2010 4. To compare Ghanaian mutual money performance with similar marketplace indices your five. To make advice to improve the management of mutual money
According to Haslem, 2009, investing in Mutual funds has with many positive aspects. A primary advantage is the specialist management of investors' money. Investors order funds because they do not have the time or maybe the expertise to handle their own collection. Secondly, by simply owning stocks and shares in a shared fund rather than owning person stocks or perhaps bonds, an investor's risk is disseminate. The idea in back of...
References: 1 . All The african continent. Ghana: Country Attains Middle Income Status. [Online]. Retrieved by: http://allafrica.com/stories/201011081261.html (accessed 30 August, 2011)
3. Brave, J. and Ellison, G., Risk Choosing by Common Funds as being a Response to Bonuses. The Journal of Political Economy, Vol. 105, No . 6. (Dec., 1997) pp. 1167 вЂ“ 1200.
four. Christopherson, J. A., Carino D. Ur. and Ferson, W. Electronic., Portfolio Functionality Measurement and Benchmarking. McGraw-Hill (2009), UNITED STATES.
5. Haslem, J. A., Mutual Money: Portfolio Constructions, Analysis, Supervision, and Stewardship. John Wiley and Sons (2009), Nj.
6. Kaminsky, G. M., Lyons, L. K. and Schmukler, H. L., Common Fund Expenditure in Growing Markets: A summary. The World Financial institution Economic Review, Vol. 12-15, No . two (2001), pp. 315-340
8. Russell. Jensen Alpha dog. [Online]. Retrieved by: http://www.russell.com/us/glossary/analytics/jensen_alpha.htm (accessed 20 This summer, 2011)
10. Securities and Exchange Commission (2009) Annual Survey, Accra Ghana.
11. Sharpe, W. F., Mutual Pay for Performance. The Journal of Business, Volume. 39, Number 1, Part 2: Supplement on Secureness Prices. (Jan., 1996). Pp. 119- 138
STAND 1 . zero NET ADVANTAGE VALUE OF MUTUAL CASH IN GHANA (2009)
Supply: Securities and Exchange Commission rate Report (2009)
TABLE installment payments on your 0 MONEY MOBILISED BY GHANAIAN SHARED FUNDS (2008 AND 2009)
Source: Securities and Exchange Commission Statement (2009)