Mutual Fund Performance: An Analysis of Monthly Returns of an Emerging Market

Mutual funds dwell in a small market in Bangladesh. Around 25 mutual funds listed in the Dhaka Stock Exchange (DSE) trade at an average of 2.7 times of their net asset value (NAV). This paper focused on evaluating the performance of more than 15 growth oriented mutual funds of DSE on the basis of monthly returns compared to benchmark returns. Risk adjusted performance measures suggested by Jenson, Treynor, Sharpe and statistical models are employed. It is found that, most of the mutual funds have performed better according to Jenson and Treynor measures but not up to the benchmark on the basis of Sharpe ratio. However, very few mutual funds are well diversified and have reduced its unique risk. The growth oriented funds have not performed better in terms of total risk and the funds are not offering advantages of diversification and professionalism to the investors. So, mutual funds cannot perform always better with their expertise and cannot beat the market. Keywords: Mutual Fund, Dhaka Stock Exchange, Diversification, Net Asset Value, Selectivity, Volatility, Market Timing

E-data Utilization on National-Health Service Performance Assessment during Covid-19 in Bangladesh: New Evidence Using Data Envelopment Analysis (DEA) Technique

Making the entire world extremely nervous, more than the quarter of a year has gone past since the global breakout of deadly respiratory illness, named Coronavirus Disease-2019 (CoViD-19), over nine million people across the globe have already been infected with more than five percent death rate, and the number is still ascending at a tremendously frightening rate. This study has been driven to identify the adequacy and quality of responses from national health facilities in Bangladesh during this epidemic and discern the stimulates that influence the entire system. With an in-depth exercise of a nonparametric statistical method for proficiency weighting, namely the Data Envelopment Analysis (DEA) technique, the objective of this study of evaluating the thorough response and performance of the Bangladeshi National Health Service has been placed in efforts to be achieved. With the outcome, the method and operation of assessing the effective responsiveness, capability, and appropriate organization of the national health services (NHS) in Bangladesh during the ongoing COVID-19 pandemic have been revealed. It has also been specifically identified that this country’s health system does not possess material mastery on input variables; neither do they have strong dominance over output variables. With a view to minimizing the expenditure, they should have decreased input variables alongside enhancing input resources thoroughly to deal with this pandemic with stringent governance. Direction and limitation of future research endeavors in this area may be indicated by this study. National responses across the globe can also be benchmarked

DYNAMICS OF MUTUAL FUNDS IN RELATION TO STOCK MARKET: A VECTOR AUTOREGRESSIVE CAUSALITY ANALYSIS

In Bangladesh, primary and secondary mutual fund markets behave in a completely different way, where initial public offering (IPO) investors of mutual funds earn more than 250 percent rerun, whereas secondary market investors cannot even manage to cover the opportunity cost of their investment. There are few other abnormalities present in this market – unlike everywhere in the world, most of the mutual funds are closed-end (92 percent) and closed-end mutual funds are barred to issue bonus or right shares. A total of 714 day’s observations, from January 2008 to December 2010, of four variables– DSE (Dhaka Stock Exchange) general index return, DSE general index turnover, mutual funds’ return and mutual funds’ turnover– are utilized. Stationarity of the variables are tested with Augmented Dickey-Fuller (ADF) unit root test and found that variables are in different order of integration. Long-term equilibrium relationships among the variables are tested with Johansen cointegration and it is found that DSE general index return and mutual funds’ return are cointegrated. Toda-Yamamoto (TY) version of granger non-causality test is employed and bidirectional causality is found moving from DSE (Dhaka Stock Exchange) general index turnover to DSE general index return, whereas unidirectional causality is found moving from mutual fund’s return to DSE general index return, mutual funds’ return to mutual funds turnover, and DSE general index turnover to mutual funds turnover. This finding helps to conclude that equity shares’ demand drives the mutual funds demand but even higher demand of mutual funds fails to raise its own price unless underlying value of the mutual funds changes