Measuring Tax and Political Sensitive on Performance of Mutual Fund

Abstract

The objective of the study was to examine the effect of political Sensitive on performance of Mutual funds in Pakistan and Measuring the Tax. For the purpose secondary data collected from UBL commercial bank for a 6 year period (2012-2018) from UBL Website. The Mutual funds are commonly those funds in which the investors are invested their money in Stock market through bank. In 2018 from UBL website people invested initial investment 5.3 Billion open end Funds in UBL. The Methodology used in this research is event study in which 1 Mutual funds is selected and daily returns from 2012-2018 The Sample Size of the Stock Prices and Mutual funds prices are 1718 in Number. The Political events are three type unexpected events and expected events and budget announcement are also considered. The total window is selected for the events are 25 and 12 days are pre event and 12 days are post days and 1 day is on Event day. The Events study show that the political sensitive have a negative impact on the performance of Mutual funds. The Cumulative Abnormal Returns T Sig Value is calculated and this shows that the Stock market of Pakistan is efficient and the investors gets abnormal returns from the market .The measuring tax is also calculated through invested Mutual funds almost 40% of the taxable income is tax credit facility avail by the investor who invested in Mutual funds.