Impact of Macroeconomic Factors on Mutual Funds in Banking Industry of Pakistan

Abstract

This paper investigates the impact of GDP and inflation on mutual funds in the banking industry of Pakistan. This research proposes a model that shows the impact of macroeconomic factors, in this case GDP (gross domestic product) and inflation on mutual funds. The approach used in this research is quantitative and used to support the theoretical model with the help of online survey. The results of all the items used in the questionnaire are analyzed with the SPSS methodology (considered credible source for exploratory research). The results drawn from 275 respondents presents that GDP and inflation do influence the mutual funds significantly. Furthermore, the research imply that the stock exchange of Pakistan can make use of investment in the mutual funds by the investors by considering the macroeconomic factors that are joint to obtain the affective outputs. This study also has some limitations of time constraint, limited sample and targeted variables, but it enables further researchers a platform for future studies. The research also demonstrates the ideal features of GDP and inflation to engage potential investors and to get the investments in mutual funds.