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

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.

An analysis into the Stock Selectivity skill of Indian Fund Managers

With the increasing emphasis on domestic savings and improvement in the deployment of investments through markets, the need and scope for mutual fund operation has increased tremendously. The mutual fund is a vehicle that enables millions of small and large savers spread across the country as well as internationally to participate in and derive the benefit of the capital market growth. It is an alternative vehicle of intermediation between the suppliers and users of investible resources. The vehicle is becoming increasingly popular in India and abroad due to higher investor return, relatively lower risk and cost. Thus the involvement of mutual funds in the transformation of Indian economy has made it urgent to view their services not only as the financial intermediary but also as pacesetters as they are playing a significant role in spreading equity culture. In India, the mutual fund industry started with the setting up of the erstwhile Unit Trust of India in 1963. Public sector banks and financial institutions were allowed to establish mutual funds in 1987. Since 1993, the private sector and foreign institutions were permitted to set up mutual funds. In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs 29,835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India doesn't come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB, and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations

An analysis into the Stock Selectivity skill of Indian Fund Managers

With the increasing emphasis on domestic savings and improvement in the deployment of investments through markets, the need and scope for mutual fund operation has increased tremendously. The mutual fund is a vehicle that enables millions of small and large savers spread across the country as well as internationally to participate in and derive the benefit of the capital market growth. It is an alternative vehicle of intermediation between the suppliers and users of investible resources. The vehicle is becoming increasingly popular in India and abroad due to higher investor return, relatively lower risk and cost. Thus the involvement of mutual funds in the transformation of Indian economy has made it urgent to view their services not only as the financial intermediary but also as pacesetters as they are playing a significant role in spreading equity culture. In India, the mutual fund industry started with the setting up of the erstwhile Unit Trust of India in 1963. Public sector banks and financial institutions were allowed to establish mutual funds in 1987. Since 1993, the private sector and foreign institutions were permitted to set up mutual funds. In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs 29,835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India doesn't come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB, and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations

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 arears are unemployed and the rate is at 11.7 percent. And the same pointer for the unemployment rate for 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

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