A Study on the Impact of Stock Index on Mutual Funds

• Main Authors: Yi-Hsing Chiu, 邱義興
• Other Authors: Chung-Fang Chang Ho
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/5bf4ub

碩士 === 中原大學 === 國際貿易研究所 === 98 === Since Taiwan’s economic take-off in the 1970s and subsequent rise of stock market, the interest on stock has become street talks. However, after the burble burst and the investor dream broken, people begin to realize that stock market is notstable investment tool. This is particular the case in Taiwan as the market is not able for its shallowness which often fluctuates dramatically. For many investors, they can not take this kind of risk. Consequently, pooling the money of many people and finding professional manager to invest become a better solution. Mutual fund is a portfolio of assets that can include hundreds of stocks and can largely reduce the fluctuation of return. As a result, mutual fund becomes a hot investment tool so does the evaluation of mutual fund performance which becomes an important topic for investment consideration. The purpose of this study explores the impact of stock index on mutual fund by selecting major domestic and international average monthly stock indexes in the last five years from 2004 to 2009 and its relationship with the better mutual fund performers in recent five years. I try to test the impact of those variables on the net value of mutual funds and use regression method to forecast the impact of those variables on the net value (NAV) of mutual funds. In addition, this study compares the effect before and after using the Enter multiple regression analysis and the Stepwise multiple regression analysis. It is found that all stock price indices chosen may influence the net value of mutual fund, both Dow Jones industry index and Hang Seng index, have impacts on NAV of mutual funds, which indicate an increasing economic tie between two economies across Taiwan strait, As a long term trend, more and more fund managers select the stocks issued in China for profit-earning purposes.