Managerial characteristics and their impact on Mutual fund performance: A case study of mutual Funds association of Pakistan

Abstract

The study aims to understand the impact of particular managerial characteristics of mutual fund managers including age, qualification, and experience, and their impact on financial performance of mutual funds that is measured by a proxy measure of expense ratio. The choice of expense ratio as a measurement techniques was selected due to ease of its accessibility through latest data. The sample include all mutual funds included in mutual funds association of Pakistan. The 57 funds were analysed on aforementioned title through least square regression. The analysis of data showed that there is a significant relationship between the qualification of mutual fund managers and fund’s performance. The managers holding CFA (Certified Financial Analyst) certifications performed better than other managers holding BBA or an MBA degree. However, age and experience showed a no signification relationship with performance hence not impacting upon the performance of a mutual fund to a great extent. The study also explore various methods mutual fund performance evaluation such as CAPM, Jenson’s Alpha, Tenyor’s ratio, and expense ratio in the critical literature review section.