Market timing ability of fund managers in India : an analysis

The mutual fund industry in India consists of public sector, private sector and foreign funds. All the three sectors were studied to compare the selectivity and timing performance on the basis of sponsorship of funds. However, from these only active funds belongings to Growth, Income, Balanced and Tax-Saving Schemes were selected for the study. The period of study is five years from April 2007 to 31st March 2011. The rationale for selecting the study period of 5-years from 1st April 2007 to 31st March 2011 stems from two reasons. Firstly, during this period, the stock market experienced higher volatility, as such chosen to find-out whether the funds have succeeded in surpassing the market performance even under depressed market conditions. Secondly, the five years were long enough to capture different market phases and to draw meaningful conclusions. Regarding timing performance empirical results have indicated that the majority i.e. 85 percent of fund managers have shown superior timing performance. As such, it is evident that Indian fund managers during the reference period were more inclined towards timing performance and market timing was evidenced, suggesting that there is a trade –off between a fund managers stock selection and market timing performance. This is indicative of the evidence of activity specialization among fund managers, implying that no manager can excel in both the activities.peer-reviewe

Economics of Kashmir Conflict

In a political conflict like Kashmir, human loss is the first tragedy coupled with the economic damage to the oppressed class. Repeated shutdowns that include curfews and protests have dented the economy of Kashmir, a fact that is irrefutable. However, this is supplemented by the ‘normalcy period’ that paves way for the economic captivity of the region. The Narendra Modi government’s decision to abrogate Article 370, which guaranteed a special status to Jammu and Kashmir (J&K) under the Indian constitution, and divide the J&K state into two separate Union Territories on 05 August 2019 has already immensely dented the local economy to the tune of 17878 crore of Indian rupees. The decision is expected to further tarnish the economy of J&K, an economy which could have been enhanced to serve the needs of local people and the developmental project of the state. In the past, there were instances when the state’s economic potential was compromised (e.g., the agreement between Reserve Bank of India and Government of J&K), which furthered the state’s dependence on New Delhi. In an official report, the state government admitted that the conflict has condensed per capita Gross Domestic Product growth, Foreign Domestic Investment inflow, exports, and trade flow in the state. The report also mentioned that J&K lost 16000 crore during the unrest of 2016. During the years 2016 and 2017, 168 curfews were imposed in nine districts of J&K, resulting in huge financial loss to locals. In 2019, the region witnessed the longest ever communication blockade of 214 days, resulting in huge losses to local businesses, and in some cases even closures. The cost of the Kashmir conflict is difficult to ascertain due to limited studies on the subject and non-availability of data. In this paper, I document the economic cost of the Kashmir conflict and the effects of Indian imperialism on the region’s society and economy using a conflict economics framework

Economics of Kashmir Confict

In a political conflict like Kashmir, human loss is the first tragedy coupled with the economic damage to the oppressed class. Repeated shutdowns that include curfews and protests have dented the economy of Kashmir, a fact that is irrefutable. However, this is supplemented by the ‘normalcy period’ that paves way for the economic captivity of the region. The Narendra Modi government’s decision to abrogate Article 370, which guaranteed a special status to Jammu and Kashmir (J&K) under the Indian constitution, and divide the J&K state into two separate Union Territories on 05 August 2019 has already immensely dented the local economy to the tune of 17878 crore of Indian rupees. The decision is expected to further tarnish the economy of J&K, an economy which could have been enhanced to serve the needs of local people and the developmental project of the state. In the past, there were instances when the state’s economic potential was compromised (e.g., the agreement between Reserve Bank of India and Government of J&K), which furthered the state’s dependence on New Delhi. In an official report, the state government admitted that the conflict has condensed per capita Gross Domestic Product growth, Foreign Domestic Investment inflow, exports, and trade flow in the state. The report also mentioned that J&K lost 16000 crore during the unrest of 2016. During the years 2016 and 2017, 168 curfews were imposed in nine districts of J&K, resulting in huge financial loss to locals. In 2019, the region witnessed the longest ever communication blockade of 214 days, resulting in huge losses to local businesses, and in some cases even closures. The cost of the Kashmir conflict is difficult to ascertain due to limited studies on the subject and non-availability of data. In this paper, I document the economic cost of the Kashmir conflict and the effects of Indian imperialism on the region’s society and economy using a conflict economics framework

Persistent Performance of Fund Managers: An Analysis of Selection and Timing Skills

The persistence in manager’s ability to select stocks and to time risk factors is a vital issue for accessing the performance of any asset management company. The fund manager who comes out successful today, whether the same will be able to sustain the performance in the future is a matter of concern to the investors and other stake holders. More than the stock picking ability of fund managers, one would be interested in knowing whether there is consistency in selectivity and timing performance or not. If a fund manager is able to deliver better performance consistently i.e. quarter-after-quarter or year-after-year, then the mangers’ performance in selecting the right type of stocks for the portfolio would be considered satisfactory. This paper has attempted to analyze the persistence in both stock selection and timing performance of mutual fund managers in India through Henriksson & Morton; Jenson, and Fama’s model over a period of five years. It is found that the fund managers present persistence in selection skills however, the sample funds haven’t shown progressive timing skills in Indian context

Selectivity Skills of Mutual Fund Managers in India: An Analysis

Stock selection is the nucleus in the investment management process. It involves identifying and selecting undervalued securities which among other things requires the successful forecasting of the company specific events or an ability to predict the general behavior of security prices in the future. If the fund manager is able to identify and select the undervalued securities for the portfolio, then it will be possible for the fund manager to increase the returns of the schemes and vice versa. In practice fund managers are expected to earn superior returns for unit holders consistently as being professionals therefore possess superior skills to collect and analyze the data with the purpose to select the right type of securities for the portfolio. The present work is based on the review of tens of studies both foreign and Indian studies relating to mutual funds. The mutual fund industry in India consists of public sector, private sector and foreign funds. All the three sectors were studied to compare the selectivity and timing performance on the basis of sponsorship of funds. However, from these only active funds belongings to Growth, Income, Balanced and Tax-Saving Schemes were selected for the study. In this paper stock selectivity skills of sample fund managers were tested by using Jensen’s Alpha and Fama’s net selectivity measure

Gender, Entrepreneurship and Socioeconomic Reparation in Jammu & Kashmir

The entrepreneurship growth is being recognized as a serviceable means of tackling Jammu and Kashmir’s [J&K] socioeconomic challenges of high unemployment, and unbalanced distribution of income. The unemployment rates revealed by National Sample Survey Office (NSSO) for the state presents a depressed image of the condition of women in the state. According to the NSSO employment position of females in urban areas are worse than that of men. The indicators were analyzed and found that the females in urban areas are unemployed and the rate is at 11.7 percent. And the same pointer for the unemployment rate for the male population is hovering at 6.7 percent and the figure at all-India for the woman (urban) joblessness rate is at 7.9 percent. It is observed that existing policies overlook the gender as a potential input for addressing the grave issue. Despite this females have proven their mettle using their peculiar gender nature effectively and efficiently in small and micro business which calls for an immediate attention by the government towards promotion of women in entrepreneurship.

Growth and performance of Indian mutual funds industry

The Indian mutual fund industry has come a long way since its inception in 1963. The industry witnessed sufficient growth on all parameters - the number of fund houses, the number of schemes, funds mobilized, assets under management, etc. Given the critical role of channeling household savings, the question is - has the Indian mutual industry succeeded in achieving its’ goal? This study addresses this concern. The detailed nature of the current study suggests that the mutual fund industry has recorded significant progress on all fronts yet it has not been able to utilize its potential fully. On almost on all parameters, it is far behind the developed economies and even most of the emerging economies of the world. Moreover, the industry faces a number of challenges like low penetration ratio, lack of product differentiation, lack of investor awareness and ability to communicate value to customers, lack of interest of retail investors towards mutual funds and evolving nature of the industry. Based on the analysis the study suggests some recommendation to address these challenges

International practices and situating public debt management in Oman

A significant amount of work is being undertaken globally on the measurements of public sector debt to enhance its sustainability. Although adoption of standards is likely to take time, a few applications are gradually being accepted internationally. In this chapter an attempt has been made to measure the sustainability of Oman’s public debt and provide a framework based on international practices, to review and propose policy options for the Central Bank of Oman (CBO) and Ministry of Finance (MOF). The Financial Affairs Council (FAC) and the MOF are the two apex authorities responsible for all financial matters in Oman. The FAC is composed of the MOF and representatives from the CBO and the Capital Market Authority (CMA). The MOF proposes financial policies to the FAC related to regulations for adoption and also monitors their implementation. Also, the MOF has authority to borrow on behalf of the Government and keep records of the government’s financial transactions. Specifications such as the purpose and limits of borrowing and objectives of debt management strategy are not spelled out clearly and the reporting of debt management activities is not mandated. In addition, there is no Public Debt Act in Oman. The main objective of this paper is to analyze the global scenario of and solutions for public debt management, current challenges and debt market development in order to identify relevant policy options for the authorities in the Sultanate of Oman

International practices and situating public debt management in Oman

A significant amount of work is being undertaken globally on the measurements of public sector debt to enhance its sustainability. Although adoption of standards is likely to take time, a few applications are gradually being accepted internationally. In this chapter an attempt has been made to measure the sustainability of Oman’s public debt and provide a framework based on international practices, to review and propose policy options for the Central Bank of Oman (CBO) and Ministry of Finance (MOF). The Financial Affairs Council (FAC) and the MOF are the two apex authorities responsible for all financial matters in Oman. The FAC is composed of the MOF and representatives from the CBO and the Capital Market Authority (CMA). The MOF proposes financial policies to the FAC related to regulations for adoption and also monitors their implementation. Also, the MOF has authority to borrow on behalf of the Government and keep records of the government’s financial transactions. Specifications such as the purpose and limits of borrowing and objectives of debt management strategy are not spelled out clearly and the reporting of debt management activities is not mandated. In addition, there is no Public Debt Act in Oman. The main objective of this paper is to analyze the global scenario of and solutions for public debt management, current challenges and debt market development in order to identify relevant policy options for the authorities in the Sultanate of Oman

Persistent Performance of Fund Managers: An analysis of selection and timing skills

The persistence in manager’s ability to select stocks and to time risk factors is a vital issue for accessing the performance of any asset management company. The fund manager who comes out successful today, whether the same will be able to sustain the performance in the future is a matter of concern to the investors and other stakeholders. More than the stock picking ability of fund managers, one would be interested in knowing whether there is consistency in selectivity and timing performance or not. If a fund manager is able to deliver better performance consistently i.e. quarter-after-quarter or year-after-year, then the managers’ performance in selecting the right type of stocks for the portfolio would be considered satisfactory. This paper has attempted to analyze the persistence in both stock selection and timing performance of mutual fund managers in India through Henriksson & Morton; Jenson, and Fama’s model over a period of five years. It is found that the fund managers present persistence in selection skills, however, the sample funds haven’t shown progressive timing skills in the Indian context