Publication:
Selectivity And Market Timing Ability Of Mutual Fund Houses In Emerging Countries

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Abstract

The paper investigates the selectivity and market timing ability of fund houses in emerging countries. The study uses comprehensive performance models on fund houses from four emerging countries. Data span is from 2007 to 2018. Findings indicate that fund managers benefit from the common facilities provided by the fund houses like market research, diversification and investment opportunity. Fund houses showed good selectivity skills but poor market timing ability. The possible reason is that fund houses manage large and different types of funds. This resulted in more complex management processes and thus reduced the ability to track the fluctuations in the market. The findings are important for investors as they are able to allocate their resources more effectively to funds that are best managed by fund houses while for managers, they are able to position themselves relative to their competing peers.

Description

Volume: 16, Number 1 (January) 2021(pp: 21–42)

Keywords

Mutual fund, fund house, selectivity ability, market timing ability, emerging countries

Citation

Bani Atta, A. A., & Marzuki, A. (2021). Selectivity and market timing ability of mutual fund houses in emerging countries. International Journal of Banking and Finance, 16(1), 21-42. https://doi.org/10.32890/ijbf2021.16.1.2